Use this link to view the PDF file: Greening of Corporate Governance: Wealth Effects of Sustainability Officer Hiring
Greening of Corporate Governance: Wealth Effects of Sustainability Officer Hiring
WaQar I. Ghani
The Journal of Finance Issues
This study reports on the impact that firms’ hiring of sustainability officers has on their shareholders’ wealth. Our stock market tests show a significantly positive effect on the wealth of shareholders of firms around the time of sustainability officer hiring announcements. It appears that hiring these officers by publicly traded firms is a signal to the market that the firm is serious about its sustainability plans and actions. These results also suggest that shareholders view a firm’s commitment to sustainability as a sound strategic choice that will accrue financial benefits for the long term.