Determinants of Corporate Sustainability Performance in Emerging Markets: The Brazilian Case

Journal of Cleaner Production, 134-141, 2013.

Posted: 31 Dec 2013

See all articles by Isabel Lourenço

Isabel Lourenço

Lisbon University Institute (ISCTE-IUL); University of São Paulo (USP)

Manuel Castelo Branco

University of Porto - Faculty of Economics

Date Written: December 30, 2013

Abstract

This study investigates the factors that drive high levels of corporate sustainability performance in an emerging country, Brazil. The level of said performance is proxied by membership of the Bovespa Corporate Sustainability Index. Using a framework combining stakeholder theory and a resource-based perspective, we examine the incentives for Brazilian listed firms to invest in corporate sustainability and develop a number of hypotheses that relate corporate sustainability performance both with operating and with financing characteristics. Our results indicate that Brazilian leading corporate sustainability performance firms are significantly larger and have a larger return on equity than their counterparts, which is consistent with previous findings for US firms. Additionally, Brazilian leading corporate sustainability performance firms also have significantly lower ownership concentration and they are more likely to have international listing status than their counterparts. Thus, our findings suggest that financing characteristics are likely to have higher significance in determining corporate sustainability performance in emerging markets, such as Brazil, than in developed countries.

Keywords: Corporate sustainability, Emerging Markets, Sustainability Index

Suggested Citation

Lourenço, Isabel and Branco, Manuel Castelo, Determinants of Corporate Sustainability Performance in Emerging Markets: The Brazilian Case (December 30, 2013). Journal of Cleaner Production, 134-141, 2013., Available at SSRN: https://ssrn.com/abstract=2373116

Isabel Lourenço (Contact Author)

Lisbon University Institute (ISCTE-IUL) ( email )

Complexo Indeg/Iscte
Av. Professor Anibal Bettencourt
Lisbon, 1600-189
Portugal

University of São Paulo (USP) ( email )

Brazil

Manuel Castelo Branco

University of Porto - Faculty of Economics ( email )

Rua Roberto Frias
s/n
4200-464 Porto, 4200-464
Portugal

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