Publication detail

Comparison of Sustainable Environmental, Social, and Corporate Governance Value Added Models for Investors Decision Making

PAVLÁKOVÁ DOČEKALOVÁ, M. KOCMANOVÁ, A.

Original Title

Comparison of Sustainable Environmental, Social, and Corporate Governance Value Added Models for Investors Decision Making

Type

journal article in Web of Science

Language

English

Original Abstract

The Sustainable Value-Added Model is a new approach in value-oriented strategic management that focuses on maximizing the value created by non-financial sustainability indicators. The objective of this paper is to refine the calculation of sustainable added value by incorporating environmental, social, and corporate governance sustainability indicators, assigning weights to the indicators and, by alternative methods, assigning target values to the indicators. Ten alternative models of Sustainable Environmental, Social, and Corporate Governance Value Added were created. The models encompass 11 environmental, social, and corporate governance indicators of sustainability and 2 economic indicators (Earnings before Interest, Taxes, Depreciation and Amortization and Value Added). Indicator values are related to the target values that represent the opportunity costs. The quality of the models was assessed by statistical methods, i.e. the ROC curve, Gini index, and Kolmogorov-Smirnov statistic. The results of these statistics show sufficient quality of all the models proposed. The most accurate model is that with the economic indicator Value Added and target values based on the values of the company with the best economic results.

Keywords

corporate sustainability; sustainable value added; ESG indicators; non-financial indicators; benchmarking; Data Envelopment Analysis

Authors

PAVLÁKOVÁ DOČEKALOVÁ, M.; KOCMANOVÁ, A.

Released

28. 2. 2018

Publisher

MDPI

Location

Basel, Switzerland

ISBN

2071-1050

Periodical

Sustainability

Year of study

10

Number

3

State

Swiss Confederation

Pages from

1

Pages to

13

Pages count

13

URL

http://www.mdpi.com/2071-1050/10/3/649

Full text in the Digital Library

http://hdl.handle.net/11012/70922

BibTex

@article{BUT146215,
  author="Marie {Pavláková Dočekalová} and Alena {Kocmanová}",
  title="Comparison of Sustainable Environmental, Social, and Corporate Governance Value Added Models for Investors Decision Making",
  journal="Sustainability",
  year="2018",
  volume="10",
  number="3",
  pages="1--13",
  doi="10.3390/su10030649",
  issn="2071-1050",
  url="http://www.mdpi.com/2071-1050/10/3/649"
}