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dc.contributor.authorSoytaş, Mehmet Ali
dc.contributor.authorUşar, Damla Durak
dc.date.accessioned2020-07-01T06:08:01Z
dc.date.available2020-07-01T06:08:01Z
dc.date.issued2017-01-01
dc.identifier.urihttp://hdl.handle.net/10679/6674
dc.identifier.urihttp://ekonomitek.org/pdffile/no16_makale2.pdf
dc.description.abstractThere is a large amount of empirical literature on the relationship between corporate sustainability and corporate financial performance. However, the literature considers company-specific aspects affecting the link but omits the influence of the competition. A firm’s gains from its sustainability efforts, however, depend on whether its industry competitors also perform sustainable actions—whether similar in type or different. Thus, we consider the sustainability decision making of companies to be of a strategic nature and show that strategic motives, typically ignored in the literature, can be an important factor in the process. We estimate an Instrumental Variable (IV) Probit model, using inclusion in the MSCI KLD 400 Social Index and draw on financial information from the Wharton Research Data Services COMPUSTAT dataset in order to identify the effect of competition. We find that the effect of competition on the likelihood of entry into the sustainability market is negative, but this is only true if the endogeneity is correctly taken into account. Probit estimates present an upward bias, which means that results from raw models can be misleading in designing policies on sustainability. Overall evidence suggests a central role for strategic motives in management’s sustainability decisions.en_US
dc.language.isoengen_US
dc.publisherTurkish Economic Associationen_US
dc.relation.ispartofEkonomi-TEKen_US
dc.rightsopenAccess
dc.titleRole of strategic interactions in corporate sustainability decisions: an empirical investigationen_US
dc.typeArticleen_US
dc.description.versionPublisher versionen_US
dc.peerreviewedyesen_US
dc.publicationstatusPublisheden_US
dc.contributor.departmentÖzyeğin University
dc.contributor.authorID(ORCID 0000-0001-5839-6069 & YÖK ID 231352) Soytaş, Mehmet
dc.contributor.ozuauthorSoytaş, Mehmet Ali
dc.identifier.volume6en_US
dc.identifier.issue1en_US
dc.identifier.startpage17en_US
dc.identifier.endpage46en_US
dc.subject.keywordsCorporate sustainabilityen_US
dc.subject.keywordsStrategic interactionsen_US
dc.subject.keywordsMarket entryen_US
dc.subject.keywordsMSCI KLD 400 social index ratingsen_US
dc.contributor.ozugradstudentUşar, Damla Durak
dc.contributor.authorMale1
dc.contributor.authorFemale1
dc.relation.publicationcategoryArticle - International Refereed Journal - Institution Academic Staff and Graduate Student


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