Stakeholder theory

Linguistics

Philosophy

Capitalization

Ecology

Biology

Statistics

Sustainability

Stock market

Accounting

Economics

Transparency (behavior)

Business

Corporate governance

Paleontology

Quartile

Mathematics

Management

Political science

Return on assets

Stock exchange

Tobin's q

Corporate social responsibility

Horse

Confidence interval

Market capitalization

Finance

Stakeholder

Business Strategy and the Environment

Much of the literature measuring the relationship between environmental, social, and governance (ESG) scores and firm performance treats the score as a measure of sustainability performance. In this study, we treat a firm's ESG score as a demonstration of strategic choice in the level of transparency that results in increased firm performance as measured by Tobin's Q and return on assets. Performance differences are a result of choice moderated by the size of the firm as measured by employees and sales. We analyze 467 firms in the S&amp;P 500 from 2009 to 2015. Applying legitimacy and stakeholder theory, we find that there is significant difference between groups with respect to disclosure and performance. The results of quartile analysis by sales, capitalization, and Tobin's Q are relevant to understand the influence that the ESG score has on financial performance. ESG influences on Tobin's Q are greatest for large firms as measured by sales, as opposed to the ESG affects on Tobin's Q and return on asset for smallest firms as measured by market capitalization.

Exploring environmental, social, and governance disclosure effects on the S&amp;P 500 financial performance

Exploring environmental, social, and governance disclosure effects on the S&amp;P 500 financial performance

Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance