The impact of ESG factors on market value of companies from travel and tourism industry
Abstract
The aim of this paper is to investigate the relationship between environmental, social, and governance (ESG) factors and firm market value for the companies from travel and tourism industry and, in the same time, to investigates the question if the association between good ESG scores for travel and tourism companies and their market value can be used as a performance predictor. The impact of extra-financial ESG performance on market value of the companies was estimated using the modified version of the Ohlson (1995) model, based on a sample of 73 listed companies, worldwide distributed, during the 2010–2015 period. The overall results of this research are consistent with the value enhancing theory (as opposed with the shareholder expense theory). From the ESG factors, the governance factor seems to have the most important influence on the market value of the selected companies, regardless of the geographic region where they are located. Thus, our findings provide new insights into the influence of each ESG factor on the market value of the companies, providing a useful tool for stakeholders to measure economic impact but also for use as a predictor of economic performance.
First published online 28 May 2019
Keyword : ESG factors, firm value, economic performance, responsible investing, travel and tourism industry
How to Cite
Ionescu, G. H., Firoiu, D., Pirvu, R., & Vilag, R. D. (2019). The impact of ESG factors on market value of companies from travel and tourism industry. Technological and Economic Development of Economy, 25(5), 820-849. https://doi.org/10.3846/tede.2019.10294
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. (2007). Putting the s back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32(3), 836-863. https://doi.org/10.5465/amr.2007.25275678
Albuquerque, R. A., Durnev, A., & Koskinen, Y. (2015). Corporate social responsibility and firm risk: Theory and empirical evidence. https://doi.org/10.2139/ssrn.1961971
Aouadi, A., & Marsat, S. (2018). Do ESG controversies matter for firm value? Evidence from international data. Journal of Business Ethics, 151(4), 1027-1047. https://doi.org/10.1007/s10551-016-3213-8
Artiach, T., Lee, D., Nelson, D., & Walker, J. (2010). The determinants of corporate sustainability performance. Accounting and Finance, 50(1), 31-51. https://doi.org/10.1111/j.1467-629X.2009.00315.x
Bajic, S., & Yurtoglu, B. B. (2016). CSR, market value, and profitability: International evidence. https://doi.org/10.2139/ssrn.2848099
Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The relevance of the value relevance literature for financial accounting standard setting: another view. Journal of Accounting and Economics, 31(13), 77-104. https://doi.org/10.1016/S0165-4101(01)00019-2
Bassen, A., & Kovács, A. M. M. (2008). Environmental, social and governance key performance indicators from a capital market perspective. Zeitschrift für Wirtschafts- und Unternehmensethik, 9(2), 182-192. https://doi.org/10.5771/1439-880X-2008-2-182
Baumol, W. J., & Blackman, S. A. B. (1991). Perfect markets and easy virtue: Business ethics and the invisible hand. USA: B. Blackwell.
Bebchuk, L. A., & Cohen, A. (2005). The costs of entrenched boards. Journal of financial Economics, 78(2), 409-433. https://doi.org/10.1016/j.jfineco.2004.12.006
Bhattacharya, C. B., Sen, S., & Korschun, D. (2008). Using corporate social responsibility to win the war for talent. MIT Sloan Management Review, 49, 37-44.
Boehe, D., & Cruz, L. B. (2010). Corporate social responsibility, product differentiation strategy and export performance. Journal of Business Ethics, 91(Suppl 2), 325-346. https://doi.org/10.1007/s10551-010-0613-z
Brammer, S., Brooks, C., & Pavelin, S. (2006). Corporate social performance and stock returns: UK evidence from disaggregate measures. Financial Management, 35(3), 97-116. https://doi.org/10.1111/j.1755-053X.2006.tb00149.x
Brown, J., & Fraser, M. (2006). Approaches and perspectives in social and environmental accounting: An overview of the conceptual landscape. Business Strategy and the Environment, 15(2), 103-117. https://doi.org/10.1002/bse.452
Brown, J. R., Ivkovic, Z., Smith, P., & Weisbenner, S. (2004). The geography of stock market participation: The influence of communities and local firms (NBER Working Papers 10235). https://doi.org/10.3386/w10235
Brown, L., & Caylor, M. (2006). Corporate governance and firm valuation. Journal of Accounting and Public Policy, 25(4), 409-434. https://doi.org/10.1016/j.jaccpubpol.2006.05.005
Brown, S. J., Lo, K., & Lys, T. (1999). Use of R2 in accounting research: Measuring changes in value relevance over the last four decades. Journal of Accounting and Economics, 28(2), 83-115. https://doi.org/10.1016/S0165-4101(99)00023-3
Bubbico, R., Giorgino, M., & Monda, B. (2012). The impact of corporate governance on the market value of financial institutions: Empirical evidence from Italy. Banks and Bank Systems, 7(2).
Byrd, E. T., Cardenas, D. A., & Dregalla, S. E. (2009). Differences in Stakeholder Attitudes of Tourism development and the natural Environment. The University of North Carolina e-Review of Tourism Research (eRTR), 7(2), 39-51.
Cahan, S. F., Chen, C., Chen, L., & Nguyen, N. H. (2015). Corporate social responsibility and media coverage. Journal of Banking & Finance, 59, 409-422. https://doi.org/10.1016/j.jbankfin.2015.07.004
Cai, L., & He, C. (2014). Corporate environmental responsibility and equity prices. Journal of Business Ethics, 125, 617-635. https://doi.org/10.1007/s10551-013-1935-4
Callan, S., & Thomas, J. (2009). Corporate financial performance and corporate social performance: An update and reinvestigation. Corporate Social Responsibility and Environmental Management, 16(2), 61-78. https://doi.org/10.1002/csr.182
Carroll, A. B., & Buchholtz, A. K. (2012). Business and society: Ethics and stakeholder management (8th ed.). South-Western Cengage Learning.
Carroll, A. B. (1991). The Pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48. https://doi.org/10.1016/0007-6813(91)90005-G
Casado-Díaz, J. M., & Simón, H. (2016). Wage differences in the hospitality sector. Tourism Management, 52, 96-109. https://doi.org/10.1016/j.tourman.2015.06.015
Cheung, Y.-L., Jiang, P., Limpaphayom, P., & Lu, T. (2008). Does corporate governance matter in China?. China Economic Review, 19(3), 460-479. https://doi.org/10.1016/j.chieco.2008.01.002
Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging Markets Review, 15, 1-33. https://doi.org/10.1016/j.ememar.2012.03.002
Clark, G. L., & Viehs, M. (2014). The implications of corporate social responsibility for investors: An overview and evaluation of the existing CSR literature. https://doi.org/10.2139/ssrn.2481877
Davis, T., & Cahill, S. (2000). Environmental implications of the tourism industry (Discussion paper 00-14). Resources for the Future.
De Klerk, M., de Villiers, C., & van Staden, C. (2015). The influence of corporate social responsibility disclosure on share prices: Evidence from the United Kingdom. Pacific Accounting Review, 27(2), 208-228. https://doi.org/10.1108/PAR-05-2013-0047
Derwall, J., Koedijk, K., & Ter Horst, J. (2010). A tale of values-driven and profit-seeking social investors. https://doi.org/10.2139/ssrn.1641131
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857. https://doi.org/10.1287/mnsc.2014.1984
Elzahar, H., Hussainey, K., Mazzi, F., & Tsalavoutas, I. (2015). Economic consequences of key performance indicators’ disclosure quality. International Review of Financial Analysis, 39, 96-112. https://doi.org/10.1016/j.irfa.2015.03.005
Erickson, T., & Whited, T. M. (2012). Treating Measurement Error in Tobin’s q. The Review of Financial Studies, 25(4), 1286-1329. https://doi.org/10.1093/rfs/hhr120
Fatemi, A. M., Fooladi, I. J, & Tehranian, H. (2015). Valuation effects of corporate social responsibility. Journal of Banking & Finance, 59, 182-192. https://doi.org/10.1016/j.jbankfin.2015.04.028
Fisher-Vanden, K., & Thorburn, K. S. (2011). Voluntary corporate environmental initiatives and shareholder wealth. Journal of Environmental Economics and Management, 62(3), 430-445. https://doi.org/10.1016/j.jeem.2011.04.003
Flammer, C. (2015). Does product market competition foster corporate social responsibility? Evidence from trade liberalization. Strategic Management Journal, 36(10), 1469-1485. https://doi.org/10.1002/smj.2307
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman Publishing Inc. (Reprinted in 2010 by Cambridge University Press).
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance and Investment, 5(4), 210-233. https://doi.org/10.1080/20430795.2015.1118917
Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine, 32(33), 122-126.
Galbreath, J. (2013). ESG in focus: The Australian evidence. Journal of Business Ethics, 118(3), 529-541. https://doi.org/10.1007/s10551-012-1607-9
Galema, R., Plantinga, A., & Scholtens, B. (2008). The stocks at stake: return and risk in socially responsible investment. Journal of Banking and Finance, 32(12), 2646-2654. https://doi.org/10.1016/j.jbankfin.2008.06.002
Giese, G., Lee, L.-E., Melas, D., Nagy, Z., & Nishikawa, L. (2017). Foundations of ESG investing. Part 1: How ESG affects equity valuation, risk and performance. MSCI Research Insight.
Giese, G., Lee, L.-E., Melas, D., Nagy, Z., & Nishikawa, L. (2018). Foundations of ESG investing Part 3: Integrating ESG into Benchmarks. MSCI Research Insight.
Gompers, P., Ishii, J., & Metrick, A. (2003). Corporate governance and equity prices. The Quarterly Journal of Economics, 118(1), 107-156. https://doi.org/10.1162/00335530360535162
Greening, D. W., & Turban, D. B. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39(3), 254-280. https://doi.org/10.1177/000765030003900302
Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41-61. https://doi.org/10.1080/0963818042000279722
Hassel, L., & Semenova, N. (2013). The added value of ESG/SRI on company and portfolio levels – What can we learn from research?, In CSR and beyond – A Nordic perspective (pp.137-163). Cappelen Damm Akademisk.
Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line?. Strategic Management Journal, 22(2), 125-139. https://doi.org/10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H
Hong, H., & Kacperczyk, M. (2009). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15-36. https://doi.org/10.1016/j.jfineco.2008.09.001
Horvathova, E. (2010). Does environmental performance affect financial performance? A meta-analysis. Ecological Economics, 70(1), 52-59. https://doi.org/10.1016/j.ecolecon.2010.04.004
Hsu, K. (2012). The advertising effects of corporate social responsibility on corporate reputation and brand equity: Evidence from the life insurance industry in Taiwan. Journal of Business Ethics, 109(2), 189-201. https://doi.org/10.1007/s10551-011-1118-0
Jacobs, B. W., Singhal, V. R., & Subramanian, R. (2010). An empirical investigation of environmental performance and the market value of the firm. Journal of Operations Management, 28(5), 430-441. https://doi.org/10.1016/j.jom.2010.01.001
Johnson, S. C. (1994). Travel services – industry overview (pp. 41-42). U.S. Department of Commerce, U.S. Industrial Outlook. https://doi.org/10.1016/0029-6554(94)90037-X
Kaspereit, T., & Lopatta, K. (2013). The value relevance of SAM’s corporate sustainability ranking and GRI sustainability reporting in the European stock markets (ZenTra Working Paper in Transnational Studies, 19). https://doi.org/10.2139/ssrn.2344631
Krce Miočić, B., Razovič, M., & Klarin, T. (2016). Management of sustainable tourism destination through stakeholder cooperation. Management, 21(2), 99-120.
Krüger, P. (2015). Climate change and firm valuation: Evidence from a quasi-natural experiment (Research Paper Series No. 15-40, 59 p.). Swiss Finance Institute. https://doi.org/10.2139/ssrn.2565523
Lee, S.-C., Chen, J.-L., & Tsa, M.-S. (2014). An empirical investigation of the Ohlson model – A panel cointegration approach. Australasian Accounting, Business and Finance Journal, 8(2), 35-51. https://doi.org/10.14453/aabfj.v8i2.4
Liu, X., & Zhang, C. (2017). Corporate governance, social responsibility information disclosure, and enterprise value in China. Journal of Cleaner Production, 142(Part 2), 1075-1084. https://doi.org/10.1016/j.jclepro.2016.09.102
Lo, K., & Lys, T. (2000). The Ohlson model: Contribution to valuation theory, limitations, and empirical applications. Journal of Accounting, Auditing and Finance, 15(3), 337-367. https://doi.org/10.1177/0148558X0001500311
Lourenço, I. C., Branco, M. C., Curto, J. D., & Eugenio, T. (2012). How does the market value corporate sustainability performance?. Journal of Business Ethics, 108(4), 417-428. https://doi.org/10.1007/s10551-011-1102-8
Lyon, T., Lu, Y., Shi, X., & Yin, Q. (2013). How do investors respond to green company awards in China?. Ecological Economics, 94, 1-8. https://doi.org/10.1016/j.ecolecon.2013.06.020
Mackey, A., Mackey, T. B., & Barney, J. B. (2007). Corporate social responsibility and firm performance: Investor preferences and corporate strategies. Academy of Management Review, 32(3), 817-835. https://doi.org/10.5465/amr.2007.25275676
Malik, M. (2015). Value-enhancing capabilities of CSR: A brief review of contemporary literature. Journal of Business Ethics, 127(2), 419-438. https://doi.org/10.1007/s10551-014-2051-9
Margolis, J. D., Elfenbein, H. A., & Walsh, J. P. (2009). Does it pay to be good and does it matter? A meta-analysis of the relationship between corporate social and financial performance. https://doi.org/10.2139/ssrn.1866371
McIntosh, R. W., & Goeldner, C. R. (1990). Tourism: principles, practices, philosophies (p. 16). New York: John Wiley and Sons.
McWilliams, A., & Sigel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification?. Strategic Management Journal, 21(5), 603-609. https://doi.org/10.1002/(SICI)1097-0266(200005)21:5<603::AID-SMJ101>3.0.CO;2-3
McWilliams, A., & Sigel, D. (2001). Corporate social responsibility: A theory of the firm perspective. The Academy of Management Review, 26(1), 117-127. https://doi.org/10.5465/amr.2001.4011987
Miralles-Quirós, M. M., Miralles-Quirós, J. L., & Valente Gonçalves, L. M. (2018). The value relevance of environmental, social, and governance performance: The Brazilian case. Sustainability, 10(3), 574. https://doi.org/10.3390/su10030574
Mitchell, R., Agle, B., & Wood, D. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. The Academy of Management Review, 22(4), 853-886. https://doi.org/10.5465/amr.1997.9711022105
Moneva, J. M., & Cuellar, B. (2009). The value relevance of financial and non-financial environmental reporting. Environmental and Resource Economics, 44(3), 441-456. https://doi.org/10.1007/s10640-009-9294-4
Moon, J. (2007). The contribution of corporate social responsibility to sustainable development. Sustainable Development, 15(5), 296-306. https://doi.org/10.1002/sd.346
Ohlson, J. A. (1995). Earnings, book value, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661-687. https://doi.org/10.1111/j.1911-3846.1995.tb00461.x
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403-441. https://doi.org/10.1177/0170840603024003910
Palmer, K., Oates, W. E., & Portey, P. R. (1995). Tightening environmental standards: the benefit-cost or the no-cost paradigm?. Journal of Economic Perspectives, 9(4), 119-132. https://doi.org/10.1257/jep.9.4.119
Ping, Z., & Cheng Wui Wing, A. (2011). Corporate governance: A summary review on different theory approaches. International Research Journal of Finance & Economics, 68, 7-13.
Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89, 62-77.
Power, T. M. (1996). Lost landscapes and failed economies: The search for a value of place (p. 215). Washington, DC: Island Press.
Radhouane, I., Nekhili, M., Nagati, H., & Paché, G. (2018). The impact of corporate environmental reporting on customer-related performance and market value. Management Decision, 56(7), 16301659. https://doi.org/10.1108/MD-03-2017-0272
Renneboog, L., Horst, J. T., & Zhang, C. (2008b). Socially responsible investments: Institutional aspects, performance, and investor behaviour. Journal of Banking & Finance, 32(9), 1723-1742. https://doi.org/10.1016/j.jbankfin.2007.12.039
Renneboog, L., Horst, J. T., & Zhang, C. (2008a). The price of ethics and stakeholder governance: The performance of socially responsible mutual funds. Journal of Corporate Finance, 14(3), 302-322. https://doi.org/10.1016/j.jcorpfin.2008.03.009
Sanchez-Ollero, J. L., Campos-Soria, J. A., & Garcia-Pozo, A. (2014). The labor market in the Spanish hospitality industry: An overview from a gender perspective. Revista Turismo y Desenvolvimiento, 21/22.
Semenova, N., Hassel, L., & Nilsson, F. (2010). The value relevance of environmental and social performance: Evidence from Swedish SIX 300 companies. The Finnish Journal of Business Economics, 3/10, 265-292.
Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225-243. https://doi.org/10.1509/jmkr.38.2.225.18838
Shank, T. M., Manullang, D. K., & Hill, R. P. (2005). Is it better to be naughty or nice?. The Journal of Investing, 14(3), 82-87. https://doi.org/10.3905/joi.2005.580553
Sikken, B. J. (2011). Accelerating the transition towards sustainable investing – strategic options for investors, corporations, and other key stakeholders (World Economic Forum Paper). https://doi.org/10.2139/ssrn.1891834
Singh, S., Tabassum, N., Darwish, T. K., & Batsakis, G. (2018). Corporate governance and Tobin’s Q as a measure of organizational performance. British Journal of Management, 29(1), 171-190. https://doi.org/10.1111/1467-8551.12237
Sparkes, R. & Cowton, C. J. (2004). The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52(1), 45-57. https://doi.org/10.1023/B:BUSI.0000033106.43260.99
Statman, M., & Glushkov, D. (2009). The wages of social responsibility. Financial Analysts Journal, 65(4), 33-46. https://doi.org/10.2469/faj.v65.n4.5
Statman, M. (2000). Socially responsible mutual funds. Financial Analysts Journal, 65(3), 30-39. https://doi.org/10.2469/faj.v56.n3.2358
Waddock, S., Bodwell, C., & Graves, S. B. (2002). Responsibility: The new business imperative. Academy of Management Executive, 16(2), 132-148. https://doi.org/10.5465/ame.2002.7173581
Waddock, S., & Graves, S. B. (1997). The corporate social performance – Financial performance link. Strategic Management Journal, 18(4), 303-319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Walsh, G., & Bartikowski B. (2013). Exploring corporate ability and social responsibility associations as antecedents of customer satisfaction cross-culturally. Journal of Business Research, 66(8), 989-995. https://doi.org/10.1016/j.jbusres.2011.12.022
Wang, M.-C. (2015). Value relevance of Tobin’s Q and corporate governance for the Taiwanese tourism industry. Journal of Business Ethics, 130(1), 223-230. https://doi.org/10.1007/s10551-014-2339-9
Welford, R. J. (2004). Corporate social responsibility in Europe and Asia: Critical elements and best practice. Journal of Corporate Citizenship, 2004(13), 31-47. https://doi.org/10.9774/GLEAF.4700.2004.sp.00007
World Travel and Tourism Council (WTTC). (2018, September). Travel & tourism economic Impact 2018. Retrieved from www.wttc.org
World Travel and Tourism Council (WTTC). (2019, January). Understanding the critical issues for the future of travel and tourism, 2017. Retrieved from www.wttc.org
Xie, Y. (2014). The effects of corporate ability and corporate social responsibility on winning customer support: An integrative examination of the roles of satisfaction, trust and identification. Global Economic Review, 43(1), 73-92. https://doi.org/10.1080/1226508X.2014.884050
Zivin, J. G., & Small, A. A. (2005). Modigliani-Miller theory of altruistic corporate social responsibility. The B.E. Journal of Economic Analysis & Policy, 5(1), 1-19. https://doi.org/10.1515/1538-0653.1369
Albuquerque, R. A., Durnev, A., & Koskinen, Y. (2015). Corporate social responsibility and firm risk: Theory and empirical evidence. https://doi.org/10.2139/ssrn.1961971
Aouadi, A., & Marsat, S. (2018). Do ESG controversies matter for firm value? Evidence from international data. Journal of Business Ethics, 151(4), 1027-1047. https://doi.org/10.1007/s10551-016-3213-8
Artiach, T., Lee, D., Nelson, D., & Walker, J. (2010). The determinants of corporate sustainability performance. Accounting and Finance, 50(1), 31-51. https://doi.org/10.1111/j.1467-629X.2009.00315.x
Bajic, S., & Yurtoglu, B. B. (2016). CSR, market value, and profitability: International evidence. https://doi.org/10.2139/ssrn.2848099
Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The relevance of the value relevance literature for financial accounting standard setting: another view. Journal of Accounting and Economics, 31(13), 77-104. https://doi.org/10.1016/S0165-4101(01)00019-2
Bassen, A., & Kovács, A. M. M. (2008). Environmental, social and governance key performance indicators from a capital market perspective. Zeitschrift für Wirtschafts- und Unternehmensethik, 9(2), 182-192. https://doi.org/10.5771/1439-880X-2008-2-182
Baumol, W. J., & Blackman, S. A. B. (1991). Perfect markets and easy virtue: Business ethics and the invisible hand. USA: B. Blackwell.
Bebchuk, L. A., & Cohen, A. (2005). The costs of entrenched boards. Journal of financial Economics, 78(2), 409-433. https://doi.org/10.1016/j.jfineco.2004.12.006
Bhattacharya, C. B., Sen, S., & Korschun, D. (2008). Using corporate social responsibility to win the war for talent. MIT Sloan Management Review, 49, 37-44.
Boehe, D., & Cruz, L. B. (2010). Corporate social responsibility, product differentiation strategy and export performance. Journal of Business Ethics, 91(Suppl 2), 325-346. https://doi.org/10.1007/s10551-010-0613-z
Brammer, S., Brooks, C., & Pavelin, S. (2006). Corporate social performance and stock returns: UK evidence from disaggregate measures. Financial Management, 35(3), 97-116. https://doi.org/10.1111/j.1755-053X.2006.tb00149.x
Brown, J., & Fraser, M. (2006). Approaches and perspectives in social and environmental accounting: An overview of the conceptual landscape. Business Strategy and the Environment, 15(2), 103-117. https://doi.org/10.1002/bse.452
Brown, J. R., Ivkovic, Z., Smith, P., & Weisbenner, S. (2004). The geography of stock market participation: The influence of communities and local firms (NBER Working Papers 10235). https://doi.org/10.3386/w10235
Brown, L., & Caylor, M. (2006). Corporate governance and firm valuation. Journal of Accounting and Public Policy, 25(4), 409-434. https://doi.org/10.1016/j.jaccpubpol.2006.05.005
Brown, S. J., Lo, K., & Lys, T. (1999). Use of R2 in accounting research: Measuring changes in value relevance over the last four decades. Journal of Accounting and Economics, 28(2), 83-115. https://doi.org/10.1016/S0165-4101(99)00023-3
Bubbico, R., Giorgino, M., & Monda, B. (2012). The impact of corporate governance on the market value of financial institutions: Empirical evidence from Italy. Banks and Bank Systems, 7(2).
Byrd, E. T., Cardenas, D. A., & Dregalla, S. E. (2009). Differences in Stakeholder Attitudes of Tourism development and the natural Environment. The University of North Carolina e-Review of Tourism Research (eRTR), 7(2), 39-51.
Cahan, S. F., Chen, C., Chen, L., & Nguyen, N. H. (2015). Corporate social responsibility and media coverage. Journal of Banking & Finance, 59, 409-422. https://doi.org/10.1016/j.jbankfin.2015.07.004
Cai, L., & He, C. (2014). Corporate environmental responsibility and equity prices. Journal of Business Ethics, 125, 617-635. https://doi.org/10.1007/s10551-013-1935-4
Callan, S., & Thomas, J. (2009). Corporate financial performance and corporate social performance: An update and reinvestigation. Corporate Social Responsibility and Environmental Management, 16(2), 61-78. https://doi.org/10.1002/csr.182
Carroll, A. B., & Buchholtz, A. K. (2012). Business and society: Ethics and stakeholder management (8th ed.). South-Western Cengage Learning.
Carroll, A. B. (1991). The Pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48. https://doi.org/10.1016/0007-6813(91)90005-G
Casado-Díaz, J. M., & Simón, H. (2016). Wage differences in the hospitality sector. Tourism Management, 52, 96-109. https://doi.org/10.1016/j.tourman.2015.06.015
Cheung, Y.-L., Jiang, P., Limpaphayom, P., & Lu, T. (2008). Does corporate governance matter in China?. China Economic Review, 19(3), 460-479. https://doi.org/10.1016/j.chieco.2008.01.002
Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging Markets Review, 15, 1-33. https://doi.org/10.1016/j.ememar.2012.03.002
Clark, G. L., & Viehs, M. (2014). The implications of corporate social responsibility for investors: An overview and evaluation of the existing CSR literature. https://doi.org/10.2139/ssrn.2481877
Davis, T., & Cahill, S. (2000). Environmental implications of the tourism industry (Discussion paper 00-14). Resources for the Future.
De Klerk, M., de Villiers, C., & van Staden, C. (2015). The influence of corporate social responsibility disclosure on share prices: Evidence from the United Kingdom. Pacific Accounting Review, 27(2), 208-228. https://doi.org/10.1108/PAR-05-2013-0047
Derwall, J., Koedijk, K., & Ter Horst, J. (2010). A tale of values-driven and profit-seeking social investors. https://doi.org/10.2139/ssrn.1641131
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857. https://doi.org/10.1287/mnsc.2014.1984
Elzahar, H., Hussainey, K., Mazzi, F., & Tsalavoutas, I. (2015). Economic consequences of key performance indicators’ disclosure quality. International Review of Financial Analysis, 39, 96-112. https://doi.org/10.1016/j.irfa.2015.03.005
Erickson, T., & Whited, T. M. (2012). Treating Measurement Error in Tobin’s q. The Review of Financial Studies, 25(4), 1286-1329. https://doi.org/10.1093/rfs/hhr120
Fatemi, A. M., Fooladi, I. J, & Tehranian, H. (2015). Valuation effects of corporate social responsibility. Journal of Banking & Finance, 59, 182-192. https://doi.org/10.1016/j.jbankfin.2015.04.028
Fisher-Vanden, K., & Thorburn, K. S. (2011). Voluntary corporate environmental initiatives and shareholder wealth. Journal of Environmental Economics and Management, 62(3), 430-445. https://doi.org/10.1016/j.jeem.2011.04.003
Flammer, C. (2015). Does product market competition foster corporate social responsibility? Evidence from trade liberalization. Strategic Management Journal, 36(10), 1469-1485. https://doi.org/10.1002/smj.2307
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman Publishing Inc. (Reprinted in 2010 by Cambridge University Press).
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance and Investment, 5(4), 210-233. https://doi.org/10.1080/20430795.2015.1118917
Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine, 32(33), 122-126.
Galbreath, J. (2013). ESG in focus: The Australian evidence. Journal of Business Ethics, 118(3), 529-541. https://doi.org/10.1007/s10551-012-1607-9
Galema, R., Plantinga, A., & Scholtens, B. (2008). The stocks at stake: return and risk in socially responsible investment. Journal of Banking and Finance, 32(12), 2646-2654. https://doi.org/10.1016/j.jbankfin.2008.06.002
Giese, G., Lee, L.-E., Melas, D., Nagy, Z., & Nishikawa, L. (2017). Foundations of ESG investing. Part 1: How ESG affects equity valuation, risk and performance. MSCI Research Insight.
Giese, G., Lee, L.-E., Melas, D., Nagy, Z., & Nishikawa, L. (2018). Foundations of ESG investing Part 3: Integrating ESG into Benchmarks. MSCI Research Insight.
Gompers, P., Ishii, J., & Metrick, A. (2003). Corporate governance and equity prices. The Quarterly Journal of Economics, 118(1), 107-156. https://doi.org/10.1162/00335530360535162
Greening, D. W., & Turban, D. B. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39(3), 254-280. https://doi.org/10.1177/000765030003900302
Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41-61. https://doi.org/10.1080/0963818042000279722
Hassel, L., & Semenova, N. (2013). The added value of ESG/SRI on company and portfolio levels – What can we learn from research?, In CSR and beyond – A Nordic perspective (pp.137-163). Cappelen Damm Akademisk.
Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line?. Strategic Management Journal, 22(2), 125-139. https://doi.org/10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H
Hong, H., & Kacperczyk, M. (2009). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15-36. https://doi.org/10.1016/j.jfineco.2008.09.001
Horvathova, E. (2010). Does environmental performance affect financial performance? A meta-analysis. Ecological Economics, 70(1), 52-59. https://doi.org/10.1016/j.ecolecon.2010.04.004
Hsu, K. (2012). The advertising effects of corporate social responsibility on corporate reputation and brand equity: Evidence from the life insurance industry in Taiwan. Journal of Business Ethics, 109(2), 189-201. https://doi.org/10.1007/s10551-011-1118-0
Jacobs, B. W., Singhal, V. R., & Subramanian, R. (2010). An empirical investigation of environmental performance and the market value of the firm. Journal of Operations Management, 28(5), 430-441. https://doi.org/10.1016/j.jom.2010.01.001
Johnson, S. C. (1994). Travel services – industry overview (pp. 41-42). U.S. Department of Commerce, U.S. Industrial Outlook. https://doi.org/10.1016/0029-6554(94)90037-X
Kaspereit, T., & Lopatta, K. (2013). The value relevance of SAM’s corporate sustainability ranking and GRI sustainability reporting in the European stock markets (ZenTra Working Paper in Transnational Studies, 19). https://doi.org/10.2139/ssrn.2344631
Krce Miočić, B., Razovič, M., & Klarin, T. (2016). Management of sustainable tourism destination through stakeholder cooperation. Management, 21(2), 99-120.
Krüger, P. (2015). Climate change and firm valuation: Evidence from a quasi-natural experiment (Research Paper Series No. 15-40, 59 p.). Swiss Finance Institute. https://doi.org/10.2139/ssrn.2565523
Lee, S.-C., Chen, J.-L., & Tsa, M.-S. (2014). An empirical investigation of the Ohlson model – A panel cointegration approach. Australasian Accounting, Business and Finance Journal, 8(2), 35-51. https://doi.org/10.14453/aabfj.v8i2.4
Liu, X., & Zhang, C. (2017). Corporate governance, social responsibility information disclosure, and enterprise value in China. Journal of Cleaner Production, 142(Part 2), 1075-1084. https://doi.org/10.1016/j.jclepro.2016.09.102
Lo, K., & Lys, T. (2000). The Ohlson model: Contribution to valuation theory, limitations, and empirical applications. Journal of Accounting, Auditing and Finance, 15(3), 337-367. https://doi.org/10.1177/0148558X0001500311
Lourenço, I. C., Branco, M. C., Curto, J. D., & Eugenio, T. (2012). How does the market value corporate sustainability performance?. Journal of Business Ethics, 108(4), 417-428. https://doi.org/10.1007/s10551-011-1102-8
Lyon, T., Lu, Y., Shi, X., & Yin, Q. (2013). How do investors respond to green company awards in China?. Ecological Economics, 94, 1-8. https://doi.org/10.1016/j.ecolecon.2013.06.020
Mackey, A., Mackey, T. B., & Barney, J. B. (2007). Corporate social responsibility and firm performance: Investor preferences and corporate strategies. Academy of Management Review, 32(3), 817-835. https://doi.org/10.5465/amr.2007.25275676
Malik, M. (2015). Value-enhancing capabilities of CSR: A brief review of contemporary literature. Journal of Business Ethics, 127(2), 419-438. https://doi.org/10.1007/s10551-014-2051-9
Margolis, J. D., Elfenbein, H. A., & Walsh, J. P. (2009). Does it pay to be good and does it matter? A meta-analysis of the relationship between corporate social and financial performance. https://doi.org/10.2139/ssrn.1866371
McIntosh, R. W., & Goeldner, C. R. (1990). Tourism: principles, practices, philosophies (p. 16). New York: John Wiley and Sons.
McWilliams, A., & Sigel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification?. Strategic Management Journal, 21(5), 603-609. https://doi.org/10.1002/(SICI)1097-0266(200005)21:5<603::AID-SMJ101>3.0.CO;2-3
McWilliams, A., & Sigel, D. (2001). Corporate social responsibility: A theory of the firm perspective. The Academy of Management Review, 26(1), 117-127. https://doi.org/10.5465/amr.2001.4011987
Miralles-Quirós, M. M., Miralles-Quirós, J. L., & Valente Gonçalves, L. M. (2018). The value relevance of environmental, social, and governance performance: The Brazilian case. Sustainability, 10(3), 574. https://doi.org/10.3390/su10030574
Mitchell, R., Agle, B., & Wood, D. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. The Academy of Management Review, 22(4), 853-886. https://doi.org/10.5465/amr.1997.9711022105
Moneva, J. M., & Cuellar, B. (2009). The value relevance of financial and non-financial environmental reporting. Environmental and Resource Economics, 44(3), 441-456. https://doi.org/10.1007/s10640-009-9294-4
Moon, J. (2007). The contribution of corporate social responsibility to sustainable development. Sustainable Development, 15(5), 296-306. https://doi.org/10.1002/sd.346
Ohlson, J. A. (1995). Earnings, book value, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661-687. https://doi.org/10.1111/j.1911-3846.1995.tb00461.x
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403-441. https://doi.org/10.1177/0170840603024003910
Palmer, K., Oates, W. E., & Portey, P. R. (1995). Tightening environmental standards: the benefit-cost or the no-cost paradigm?. Journal of Economic Perspectives, 9(4), 119-132. https://doi.org/10.1257/jep.9.4.119
Ping, Z., & Cheng Wui Wing, A. (2011). Corporate governance: A summary review on different theory approaches. International Research Journal of Finance & Economics, 68, 7-13.
Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89, 62-77.
Power, T. M. (1996). Lost landscapes and failed economies: The search for a value of place (p. 215). Washington, DC: Island Press.
Radhouane, I., Nekhili, M., Nagati, H., & Paché, G. (2018). The impact of corporate environmental reporting on customer-related performance and market value. Management Decision, 56(7), 16301659. https://doi.org/10.1108/MD-03-2017-0272
Renneboog, L., Horst, J. T., & Zhang, C. (2008b). Socially responsible investments: Institutional aspects, performance, and investor behaviour. Journal of Banking & Finance, 32(9), 1723-1742. https://doi.org/10.1016/j.jbankfin.2007.12.039
Renneboog, L., Horst, J. T., & Zhang, C. (2008a). The price of ethics and stakeholder governance: The performance of socially responsible mutual funds. Journal of Corporate Finance, 14(3), 302-322. https://doi.org/10.1016/j.jcorpfin.2008.03.009
Sanchez-Ollero, J. L., Campos-Soria, J. A., & Garcia-Pozo, A. (2014). The labor market in the Spanish hospitality industry: An overview from a gender perspective. Revista Turismo y Desenvolvimiento, 21/22.
Semenova, N., Hassel, L., & Nilsson, F. (2010). The value relevance of environmental and social performance: Evidence from Swedish SIX 300 companies. The Finnish Journal of Business Economics, 3/10, 265-292.
Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225-243. https://doi.org/10.1509/jmkr.38.2.225.18838
Shank, T. M., Manullang, D. K., & Hill, R. P. (2005). Is it better to be naughty or nice?. The Journal of Investing, 14(3), 82-87. https://doi.org/10.3905/joi.2005.580553
Sikken, B. J. (2011). Accelerating the transition towards sustainable investing – strategic options for investors, corporations, and other key stakeholders (World Economic Forum Paper). https://doi.org/10.2139/ssrn.1891834
Singh, S., Tabassum, N., Darwish, T. K., & Batsakis, G. (2018). Corporate governance and Tobin’s Q as a measure of organizational performance. British Journal of Management, 29(1), 171-190. https://doi.org/10.1111/1467-8551.12237
Sparkes, R. & Cowton, C. J. (2004). The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52(1), 45-57. https://doi.org/10.1023/B:BUSI.0000033106.43260.99
Statman, M., & Glushkov, D. (2009). The wages of social responsibility. Financial Analysts Journal, 65(4), 33-46. https://doi.org/10.2469/faj.v65.n4.5
Statman, M. (2000). Socially responsible mutual funds. Financial Analysts Journal, 65(3), 30-39. https://doi.org/10.2469/faj.v56.n3.2358
Waddock, S., Bodwell, C., & Graves, S. B. (2002). Responsibility: The new business imperative. Academy of Management Executive, 16(2), 132-148. https://doi.org/10.5465/ame.2002.7173581
Waddock, S., & Graves, S. B. (1997). The corporate social performance – Financial performance link. Strategic Management Journal, 18(4), 303-319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Walsh, G., & Bartikowski B. (2013). Exploring corporate ability and social responsibility associations as antecedents of customer satisfaction cross-culturally. Journal of Business Research, 66(8), 989-995. https://doi.org/10.1016/j.jbusres.2011.12.022
Wang, M.-C. (2015). Value relevance of Tobin’s Q and corporate governance for the Taiwanese tourism industry. Journal of Business Ethics, 130(1), 223-230. https://doi.org/10.1007/s10551-014-2339-9
Welford, R. J. (2004). Corporate social responsibility in Europe and Asia: Critical elements and best practice. Journal of Corporate Citizenship, 2004(13), 31-47. https://doi.org/10.9774/GLEAF.4700.2004.sp.00007
World Travel and Tourism Council (WTTC). (2018, September). Travel & tourism economic Impact 2018. Retrieved from www.wttc.org
World Travel and Tourism Council (WTTC). (2019, January). Understanding the critical issues for the future of travel and tourism, 2017. Retrieved from www.wttc.org
Xie, Y. (2014). The effects of corporate ability and corporate social responsibility on winning customer support: An integrative examination of the roles of satisfaction, trust and identification. Global Economic Review, 43(1), 73-92. https://doi.org/10.1080/1226508X.2014.884050
Zivin, J. G., & Small, A. A. (2005). Modigliani-Miller theory of altruistic corporate social responsibility. The B.E. Journal of Economic Analysis & Policy, 5(1), 1-19. https://doi.org/10.1515/1538-0653.1369