Title: Sustainability (green) initiatives and company's value - an examination of S&P 500 US companies

Authors: Beixin Lin; Agatha E. Jeffers; Silvia Romero; Laurence A. DeGaetano

Addresses: Montclair State University, 1 Normal Avenue Montclair, NJ 07043, USA ' Montclair State University, 1 Normal Avenue Montclair, NJ 07043, USA ' Montclair State University, 1 Normal Avenue Montclair, NJ 07043, USA ' Montclair State University, 1 Normal Avenue Montclair, NJ 07043, USA

Abstract: The increased adoption of sustainability practices in corporations raises the question of whether these practices add value to companies and their shareholders. In this paper, we utilise a sample of the S&P 500 US companies to examine if sustainability (green) initiatives add value to corporations. Quantitative metrics and ratios are utilised as proxies for company value. The results of our analysis indicate that companies indeed increase their value by enacting sustainable initiatives. These results will undoubtedly lead to more informed and improved decision making by managers and stakeholders regarding the enactment of sustainable initiatives in organisations.

Keywords: sustainability initiatives; green initiatives; corporate social responsibility; CSR; company value; firm value; USA; United States; value added; sustainable development.

DOI: 10.1504/IJSSS.2015.071313

International Journal of Society Systems Science, 2015 Vol.7 No.3, pp.181 - 197

Available online: 20 Aug 2015 *

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