Detecting Green-Washing or Substantial Organizational Communication: A Model for Testing Two-Way Interaction Between Risk and Sustainability Reporting

Klarissa Lueg and Rainer Lueg
Additional contact information
Klarissa Lueg: Center for Narratological Studies (CNS), University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark

Sustainability, 2020, vol. 12, issue 6, 1-9

Abstract: This paper contributes to the expanding landscape of methodological approaches and tools for investigating organizational sustainability communication. Our method allows for exploring two-way interactions between company risk and sustainability reporting. We present a basic but extendable method, while using only publicly available data. Our method adds additional features to established methods: It covers only risk (not returns), as theory mainly supports risk-reporting relationships and not return-reporting relationships. It tests for reverse causality of the risk-reporting relationship and links complementary explanations to different theoretical schools. Our method tests the model by employing data from a market with mandatory sustainability reporting to avoid self-selection bias.

Keywords: Environment, Social, and Governance (ESG) scores; risk; Granger causality (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/6/2520/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/6/2520/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:6:p:2520-:d:336094

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().