Back to Search

Does being internationalmake companiesmore sustainable? Evidence based on corporate sustainability indices

Title	Does being internationalmake companiesmore sustainable? Evidence based on corporate sustainability indices
Author	Soytaş, Mehmet Ali, Atik, Asya
Publication Date:	2018-06
Publication Place	- Elsevier
Subject	Corporate sustainability, Internationality, MSCI KLD 400 social index ratings, Compustat
Type	Periodical
Language	English
Digital	Yes
Manuscript	No
Library:	Özyeğin University
Library Asset ID	1303-0701
Record ID	0d32ebfa-a111-4998-93ba-c8edde08cfd7
Library Location	Economics
Date	2018-06
Sample Text	The existing literature on the relationship between corporate sustainability performance and being a domestic or international company doubt on which type of operating has more potential to be corporate sustainable. It might be expected that two types of firms can have different advantages. We take this as an empirical question and bring it to data to find an answer. We created a methodology to compare the corporate sustainability level of different companies. In this methodology, we developed different internationality indices and evaluate the effects of those on corporate sustainability. We used firm level financial variables, time and firm effects for controlling some aspects of firm heterogeneity. We estimate the indices of the internationality using the performance ratings from MSCI KLD 400 Social Index and financial information from Wharton Research Data Services' COMPUSTAT dataset. Our results present empirical evidence to support the hypothesis that being an international firm is increasing the sustainability of the company on average. Furthermore, to better understand the mechanism of this result, we examined the effect of being international separately for the factors (these are named as strengths and concerns in KLD) that increase and decrease the sustainability score of the companies respectively. We found surprisingly that being an international firm increases both strengths and concerns more compared to a domestic firm. This suggests that international companies perform higher standards on the strengths but also face hard time to reduce the concerns due to possibly multiple regulations that they face, or coordination issues in different counties etc.
DOI	10.1016/j.cbrev.2018.05.002
Cilt	18

View in source Özyeğin University Özyeğin University - Historical works, archives, and periodicals search engine

Özyeğin University

Does being internationalmake companiesmore sustainable? Evidence based on corporate sustainability indices

Author Soytaş, Mehmet Ali, Atik, Asya

Publication Date 2018-06

Publication Place - Elsevier

Subject Corporate sustainability, Internationality, MSCI KLD 400 social index ratings, Compustat

Type Periodical

Language English

Digital Yes

Manuscript No

Library Özyeğin University

Library Asset ID 1303-0701

Record ID 0d32ebfa-a111-4998-93ba-c8edde08cfd7

Library Location Economics

Date 2018-06

Sample Text The existing literature on the relationship between corporate sustainability performance and being a domestic or international company doubt on which type of operating has more potential to be corporate sustainable. It might be expected that two types of firms can have different advantages. We take this as an empirical question and bring it to data to find an answer. We created a methodology to compare the corporate sustainability level of different companies. In this methodology, we developed different internationality indices and evaluate the effects of those on corporate sustainability. We used firm level financial variables, time and firm effects for controlling some aspects of firm heterogeneity. We estimate the indices of the internationality using the performance ratings from MSCI KLD 400 Social Index and financial information from Wharton Research Data Services' COMPUSTAT dataset. Our results present empirical evidence to support the hypothesis that being an international firm is increasing the sustainability of the company on average. Furthermore, to better understand the mechanism of this result, we examined the effect of being international separately for the factors (these are named as strengths and concerns in KLD) that increase and decrease the sustainability score of the companies respectively. We found surprisingly that being an international firm increases both strengths and concerns more compared to a domestic firm. This suggests that international companies perform higher standards on the strengths but also face hard time to reduce the concerns due to possibly multiple regulations that they face, or coordination issues in different counties etc.

DOI 10.1016/j.cbrev.2018.05.002

Cilt 18