Masterarbeit, 2013
54 Seiten, Note: GPA 3.7
This project aims to analyze the relationship between corporate sustainability and company performance, particularly focusing on market and risk-adjusted performance. The study utilizes previously unused data to complement existing empirical research on sustainability and financial performance. It seeks to determine whether companies with higher levels of sustainability demonstrate improved performance compared to their less sustainable counterparts.
Chapter 1 provides an overview of the project, defining key terms, outlining the problem statement, and establishing the purpose and significance of the study. It also details the research questions and hypotheses, including variables and the theoretical framework. Chapter 2 delves into the foundations of the project design, reviewing relevant literature, outlining the research design, and discussing sampling methods and procedures. It also addresses the validity and appropriateness of the methodology employed. Chapter 3 presents the action plan, focusing on the analysis of each hypothesis, utilizing descriptive and graphical analyses where applicable. Finally, Chapter 4 discusses the conclusions derived from the study, examining the research questions, data analysis, and hypotheses in relation to the null hypothesis.
This project explores the relationship between corporate sustainability and company performance, focusing on market and risk-adjusted performance. Key areas of focus include sustainable development strategies, investor valuation, financial markets, risk assessment, and the use of multiple indexes such as the Dow Jones Sustainability World Index, Dow Jones Global Index, and Dow Jones Global Total Stock Market Index. The study investigates the potential existence of a generic business case for sustainability, analyzing whether companies with higher levels of sustainability demonstrate improved performance compared to their less sustainable counterparts.
The study provides no significant evidence for a generic business case. While sustainable companies may show slightly higher returns, they also exhibit higher volatility and lower Sharpe Ratios.
The analysis used the Dow Jones Sustainability World Index (DJSIW), the Dow Jones Global Index (DJGI), and the Dow Jones Global Total Stock Market Index (DJGTSM).
The study primarily uses the Sharpe Ratio to evaluate whether the returns of sustainable companies justify the risks taken.
The results indicate that companies with remarkable sustainable development strategies are not more likely to be rewarded by investors with a higher valuation in financial markets.
The DJSIW represents the most sustainable companies. The study expected it to perform better, but found its performance was insignificant when adjusted for risk.
Sustainability offers opportunities to lower costs and increase profit for some, but it does not automatically translate into superior market or risk-adjusted performance across the board.
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