Q2. What are the future works in "The role of corporate sustainability performance for economic performance: a firm-level analysis of moderation effects" ?
Still, future research should put the role of different forms of innovation to an empirical test. To some degree this seems to indicate also that the co-evolution of industry structure and technology, understanding and practice ( Nelson and Winter, 2002 ) and the consequences of these for institutions and innovation systems should be analysed further in future research, especially with regard to performance implications. Therefore, future research should attempt to use these variables directly to analyse interaction effects and to confirm the results of this study. Furthermore, it highlights for policymakers the need to consider the possibility of subsidizing advertising activities as the moderating factor, rather than socially-related activities themselves.
Q3. What is the main approach to assess the relationship between sustainability and economic performance of firms?
Regression-based studies are a main approach to assess the relationship between sustainability and economic performance of firms.
Q4. What sources of data were used for the analysis?
The main sources from which data were collected were the Compustat and Worldscope Disclosure and BankerOne databases and the ratings of corporate social responsibility and environmental management carried out by KLD.
Q5. What is the main argument of Hull and Rothenberg?
Hull and Rothenberg (20089) argue that the association of sustainability with economic performance depends on firms’ ability to differentiate their offerings, which is moderated by innovation activities and the level of advertising.
Q6. What is the effect of corporate sustainability performance on Tobin’s q?
The effect of corporate sustainability performance on Tobin’s q is largest for high levels of advertising intensity, whereas for medium levels of advertising intensity, the association is less strong than for high, but clearly stronger than for low advertising intensity.
Q7. What is the role of advertising in promoting corporate sustainability?
To the degree that environmentally concerned employees selfselect themselves into appropriate firms, labelling and other advertising activities aimed at signalling high levels of CSP enable a firm to strengthen a reputation of endorsing corporate sustainability and (e.g. by hiring environmentally concerned employees) to create a strategic resource that supports better differentiation and, ultimately, better economic performance.
Q8. What are the environmental performance measures adopted by Konar and Cohen?
The environmental performance measures adopted by Konar and Cohen were the aggregate mass of emitted toxic chemicals listed in the Toxic Release Inventory (TRI), normalized for size using firm sales and the number of environmental lawsuits pending against a firm.
Q9. How many US companies are in the KLD database?
The KLD database contains detailed annual ratings on the environmental and social activities and performance of over 600 of the largest US companies.
Q10. What is the purpose of this paper?
To conclude, this paper addressed three hypotheses on the linkages between corporate sustainability, innovation and economic performance.
Q11. What is the effect of corporate social performance on Tobin’s q?
As concerns the moderation effect, Figure 2 reveals that corporate social performance affects Tobin’s q most strongly for high levels of advertising intensity, whereas for medium levels of advertising intensity, the association is less strong than for high, but clearly stronger than for low advertising intensity.
Q12. What is the value of unity for firms without intangible assets?
As concerns the dependent variable measuring economic performance, Tobin’s q was chosen, which takes the value of unity for firms without intangible assets and is closely related to the ratio between the tangible and intangible asset values.
Q13. How many cases were available for the period 1992 to 2003?
After matching KLD data with financial and organisational data from the other sources, 3697 usable cases remained for the period 1992 to 2003, for which data were however not always available on all variables included in the analysis.