Sustainability and its impact on corporate financial performance: empirical evidence in the Colombian stock market

Authors

DOI:

https://doi.org/10.17981/econcuc.42.2.2021.Econ.3

Keywords:

Corporate sustainability, Corporate financial performance, ESG practices, ESG index, Colombian companies

Abstract

Corporate sustainability has been consolidated as an effective leadership and management approach to configure an environment of trust, transparency and full information necessary to strengthen business integrity and well-being, especially in regions such as Latin America, where most of the countries they depend increasingly on the commitment of the private sector to society. In this sense, the article studies the relationship between the quality of environmental, social and governance (ESG) practices and the long-term financial performance of Colombian companies listed on the stock market. Historical information of a public nature, obtained from Bloomberg, between 2008 and 2018 is used. The econometric analysis is developed through unbalanced panel data. The results reveal that good ESG practices adopted by national firms lead to a better performance in their environment and in front of their stakeholders, which is reflected in better business performance over time

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Author Biographies

Luis Ángel Meneses Cerón, Universidad Cooperativa de Colombia

He is a Business Administrator, graduated from the Universidad del Cauca (Popayán, Cauca), Magister in Administration and Specialist in Finance from the Universidad Icesi (Cali, Valle). PhD candidate in Business Economics from the Universidad Icesi (Cali, Valle). University professor in undergraduate and graduate degrees. He is a researcher for the CACE multicampus group of the Universidad Cooperativa de Colombia. With extensive experience in the financial sector at a public and private level.

Jaime Andrés Carabali Mosquera, Banco W

He is an Economist, graduated from the Universidad del Valle (Cali, Valle), Master in Applied Economics from the Universidad Icesi (Cali, Valle); with research experience in economic and financial theory. He currently works as a data scientist in the risk area of ​​Bank W.

Camilo Andrés Pérez Pacheco, Corporación Universitaria Autónoma del Cauca

He is an Economist, graduated from the Universidad del Cauca (Popayán, Cauca), specialist in Public Management from the Universidad Nacional Abierta y a Distancia (Bogotá, Colombia), Master in Financial Management at the Universidad Nacional Abierta y a Distancia (Bogotá, Colombia), Professor undergraduate college. He is a researcher for the GDS group of the Corporación Universitaria Autónoma del Cauca.

Andres Felipe Caracas Nuñez, Universidad Cooperativa de Colombia

He is a mechatronic engineer, graduated from the Universidad Autónoma de Occidente (Cali, Valle), Master in Organization Management from the CUniversidad Cooperativa de Colombia (Popayán, Cauca). Specialist in Internal Audit Management Universidad Santiago de Cali (Cali, Valle). With extensive experience in the financial and forestry sector at a public and private level.

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Published

2021-03-27

How to Cite

Meneses Cerón, L. Ángel, Carabali Mosquera, J. A., Pérez Pacheco, C. A., & Caracas Nuñez, A. F. (2021). Sustainability and its impact on corporate financial performance: empirical evidence in the Colombian stock market. ECONÓMICAS CUC, 42(2), 187–204. https://doi.org/10.17981/econcuc.42.2.2021.Econ.3

Issue

Vol. 42 No. 2 (2021)

Section

Articles: Economy and Finance

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