Corporate Sustainability: Do Executives and Investors Care? An Empirical Study
International Journal of Management and Marketing Research, v. 11 (1) p. 19-26, 2018
8 Pages Posted: 28 Feb 2019
Date Written: 2018
This research examines the association between corporate sustainability reporting ESG score and firm’s financial performance, Executive compensation. Empirical analysis is performed on firms listed on S&P 500 and S&P/TSX firms. Regression method is used to test the impact of ESG score of a year on next years’ ROE and Executive compensation. Empirical evidence suggests that ESG scores of an year has an impact on ROE of the following year during the period of investigation 2011 to 2015, whereas ESG scores showed similar impact on Executive compensation from the year 2013 onwards suggesting executive compensation is tied to corporate sustainability performance.
Keywords: Sustainability, ESG, ROE, Executive Compensation
JEL Classification: G3, M2
Suggested Citation: Suggested Citation