Sustainability awards and the market value of the firm: An empirical investigation

This paper empirically estimates the impact of sustainability development on the market value of the firm. We use a firm's receipt of a sustainability award as a proxy for its sustainability development effectiveness. Based on data from 398 announcements of sustainability awards given to the firms during the period 2010–2015, the evidence suggests that, on average, the stock market reaction to sustainability award winning announcement is value neutral, the stock market reacts more positively under certain award giver category. We conclude that companies should analyze and choose better sustainable action to enhance companies' competitiveness.