Is There a Relationship between Sustainability Initiatives and a Company’s Value?

• In Event: Financial Accounting and Reporting 7

Abstract

The call for transparency has led to increased issuance of sustainability reports. Would green reporting identify corporations that add value through their sustainability practices? We use a small sample of companies to undertake an exploratory study of whether green reporting measures add value to a corporation. The results of our analysis are mixed but indicate some positive relationship between sustainability initiatives and a company’s value. The results of this paper can be of considerable benefit to corporate executives and compliance officers, government standard setters and regulators, environmental groups, investors, creditors and a host of other interested parties.

Authors

• Agatha E Jeffers, Montclair State University

• Larry A. DeGaetano, Montclair State University