The effects of sustainable development on firms' financial performance - an empirical approach

Dong-shang Chang and Li-chin Regina Kuo
Additional contact information
Dong-shang Chang: National Central University, Department of Business Administration, Jhongli City, Taiwan, Postal: National Central University, Department of Business Administration, Jhongli City, Taiwan
Li-chin Regina Kuo: National Central University, Department of Business Administration, Jhongli City, Taiwan, Postal: National Central University, Department of Business Administration, Jhongli City, Taiwan

Sustainable Development, 2008, vol. 16, issue 6, 365-380

Abstract: This research studies firms' sustainable development in term of economic, environmental and social dimensions and their financial performance, which includes a broader coverage of stakeholder engagement of both sustainability and profitability in a structural equation model (SEM). The secondary data of 311 firms' sustainability scores are analyzed and our observations reveal that (1) the better sustainability performers may have a tendency of positive influence on firm profitability in the same and later periods, (2) a positive reciprocal causality may exist between sustainability and profitability among the better sustainability group, (3) profitability affects corporate sustainability positively in both higher and lower sustainability groups and (4) sustainability influences firm profitability negatively in the lower sustainability group. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://hdl.handle.net/10.1002/sd.351 Link to full text; subscription required (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:wly:sustdv:v:16:y:2008:i:6:p:365-380

DOI: 10.1002/sd.351

Access Statistics for this article

Sustainable Development is currently edited by Richard Welford

More articles in Sustainable Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().