Firms’ Sustainability Performance and Market Longevity

Fafaliou, Irene and Giaka, Maria and Konstantios, Dimitrios and Polemis, Michael (2020): Firms’ Sustainability Performance and Market Longevity.

Abstract

This study examines the impact of sustainability (ESG) on US listed firms’ exit decision. Using a recent dataset of a large number of US firms over the period 2007- 2016, we perform a dynamic empirical analysis of the relation between ESG and firms’ exiting mechanism by measuring environmental, social and governance issues. We provide evidence that corporate sustainability is a tool that can reduce risks and enable companies to boost surviving mechanisms and face less probability of failure. Finally, we perform several statistical tests for robustness purposes

• Item Type: MPRA Paper
• Language: English
• Keywords: Sustainability; Longevity, Corporate Sustainability Performance
• Subjects: G - Financial Economics > G1 - General Financial Markets; G - Financial Economics > G3 - Corporate Finance and Governance; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M14 - Corporate Culture ; Diversity ; Social Responsibility; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

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