Corporate Sustainability: First Evidence on Materiality

• 成果类型: Article
• 署名作者: Khan, Mozaffar; Serafeim, George; Yoon, Aaron
• 署名单位: Harvard University; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-51383
• 发表日期: 2016
• 页码: 1697-1724
• 关键词: SOCIAL-RESPONSIBILITY; nonfinancial disclosure; stakeholder management; financial performance; SHAREHOLDER VALUE; RISK; INITIATIVES; governance; companies; returns

摘要

Using newly available materiality classifications of sustainability topics, we develop a novel dataset by hand-mapping sustainability investments classified as material for each industry into firm-specific sustainability ratings. This allows us to present new evidence on the value implications of sustainability investments. Using both calendar-time portfolio stock return regressions and firm-level panel regressions, we find that firms with good ratings on material sustainability issues significantly outperform firms with poor ratings on these issues. In contrast, firms with good ratings on immaterial sustainability issues do not significantly outperform firms with poor ratings on the same issues. These results are confirmed when we analyze future changes in accounting performance. The results have implications for asset managers who have committed to the integration of sustainability factors in their capital allocation decisions.