The Impact Of Sustainability Development On Firms' Market Value

Driven by ecological and social trends,company environments are rapidly changing.In this context,there has been an increasing interest in changing businesses towards corporate sustainability.Consequently,managing corporate sustainability is a strategic and profit-driven corporate response to environmental and social issues caused through the organization's primary and secondary activities.However,does effective sustainability development add value to shareholders? Which firm and industry factor increase or decrease the value of effective sustainability development? All of these questions should be solved urgently for the researchers and the managers.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 483 announcements of sustainability awards given to the firms during the period 2007--2016,the evidence suggests that,on average,in short term the stock market reaction to sustainability award winning announcement is not significant,but stock market reaction to sustainability award winning announcement is significantly positive the long run,and stock market reacts differently depend on the features of awards,award givers,industry and award winners.This article discusses the relationship between corporate sustainable development and the market value of the company from the perspective of shareholders' equity and investor interest.The study of the sustainable development of the company has enriched the content.In addition,the event study is combined with the research on sustainable development of enterprises,and there are certain innovations in the research methods.In addition,it has certain reference value for companies sustainable development management.