How Do Sustainability Investments Effect Financial Performance? An Instrumental Variable Approach
DOI:
https://doi.org/10.33423/jaf.v20i3.3013Keywords:
Accounting, Finance, sustainability, financial measurement, endogeneity, agriculture, Financial Performance, investmentsAbstract
This study investigates the relationship between sustainability investments and financial performance by observing a natural experiment in an industry that is saturated with firms engaging in sustainability practices: agriculture. We analyzed the financial statements of almond farms over a ten-year period to investigate financial outcomes. The findings of this study support a positive, indirect relationship between sustainability investments and financial performance through the significant increase in almond yield across farms and overtime (even when considering the endogenous relationship between investments and financial performance).
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Published
2020-08-23
How to Cite
Henderson, S. A., & Ryabova, T. (2020). How Do Sustainability Investments Effect Financial Performance? An Instrumental Variable Approach. Journal of Accounting and Finance, 20(3). https://doi.org/10.33423/jaf.v20i3.3013
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