Economic and financial impact of corporate sustainability on sustainable competitive advantage
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Data
2015-04
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Resumo
The balance between environmentally sustainable, socially ethical and economic growth has been
investigated in the literature of business strategy. However, studies do not show whether or not a
for-profit organization can gain sustainable competitive advantage. Some limitations refer to nonexperimental
studies that do not control spurious effect of confounding variables, as well as not
using variables that capture the intangible aspects of sustainable practices. To overcome these
limitations, this study examined whether adherence to corporate sustainability practices - the
company's presence in the Corporate Sustainability Index (CSI) - is itself a source of sustainable
competitive advantage, controlling spurious effects. By means of experimental design using control
group, we used Generalized Estimation Equations with dependent variables Tobin's Q, Return on
Assets and Financial Leverage and, as control, firm size, industry, and year of data collection. The
results indicate that participation in the CSI does not affect the degree of leverage of firms, but
positively influences the return on assets and the market value above the average of other companies
in the same industry throughout the years. Thus, sustainable practices bring financial benefits
above the average of other companies in the same industry throughout the years, making them a
sustainable competitive advantage.
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Palavras-chave
Corporate sustainability index, Resource-based view, Corporate financial performance
Citação
PIMENTA, Daiana Paula; CRUZ, Alethéia Ferreira da; PORTO, Rapael Barretos. Economic and financial impact of corporate sustainability on sustainable competitive advantage. REBRAE: revista brasileira de estratégia, Curitiba, v. 8, n.1, p. 9-25, jan./abr. 2015.