Impact of Sustainability Performance of Company on its Financial Performance: A Study of Listed Indian Companies

Priyanka Aggarwal

Impact of Sustainability Performance of Company on its Financial Performance: A Study of Listed Indian Companies

Priyanka Aggarwal * §

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University of Delhi

Impact of Sustainability Performance of Company on its Financial Performance: A Study of Listed Indian Companies

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Abstract

Sustainability is a crucial issue for corporate world today. The interest of investors in Socially Responsible Investment (SRI) has grown substantially over last decade. Thus, sustainability has potential to influence company performance. The purpose of this paper is to find “whether sustainable companies are more profitable”. Various researches were conducted in past for examining this relationship. Results, however, have been mixed and inconclusive. Moreover, most of the studies have been conducted in context of developed countries. The purpose of this paper is to examine impact of sustainability rating of company on its financial performance in an Indian context using secondary data. We also separately analyze impact of four key components of sustainability (i.e. Community, Employees, Environment and Governance) on financial performance. We find no significant association between overall sustainability rating and financial performance. However, further analysis reveals that four components of sustainability have significant but varying impact on financial performance.

References

15 Cites in Article

Reference Format

Ha1: Overall sustainability performance of company has an impact on its financial performance. 2) Ho2: Community-related performance of company has no impact on its financial performance. Ha2: Community-related performance of company has an impact on its financial performance. 3) Ho3: Employees-related performance of company has no impact on its financial performance. Ha3: Employees-related performance of company has an impact on its financial performance. 4) Ho4: Environment-related performance of company has no impact on its financial performance. Ha4: Environment-related performance of company has an impact on its financial performance. 5) Ho5.
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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Priyanka Aggarwal. 2013. "Impact of Sustainability Performance of Company on its Financial Performance: A Study of Listed Indian Companies". Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 13 (GJMBR Volume 13 Issue C11).

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GJMBR Volume 13 Issue C11

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Corporate Social Responsibility (CSR)corporate sustainability Financial Performance socially responsible investment (SRI Sustainability Reporting

Classification

GJMBR-C Classification JEL Code: D92

F65

Submission ReceivedDecember 16, 2012
Peer Review Double Blind
Handling Editor
Accepted January 5, 2013
Published January 15, 2013

Version of record

v1.2

Issue date

December 19, 2013

Language

English

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Article Matrices

Total Score: 148

Country: India

Subject: Global Journal of Management and Business Research

Authors: Priyanka Aggarwal (PhD/Dr. count: 0)

View Count (all-time): 399

Total Views (Real + Logic): 2185

Total Downloads (simulated): 153

Publish Date: 2013 01, Tue

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Total Views: 2.2K

Total Downloads: 153

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