CORPORATE SUSTAINABILITY AND FAIR MARKET VALUE: A STUDY OF INDIAN FAMILY VERSUS NON FAMILY FIRMS

  • Meena Sharma Professor, University Business School Panjab University, Chandigarh
  • Raj Kumar Former Director, Dean, Institute of Management Studies Banaras Hindu University (BHU), Varanasi
  • Rajbir Kaur Research scholar, University Business School

Abstract

The recent corporate trends show a shift towards responsible performance and increased responsibility disclosures. The reporting of environmental, social and governance (ESG) factors by a firm have been found to have positive market valuations.  This study empirically analyses the association of ESG disclosures and market valuations in an emerging market, India. This study is original as it examines the association between responsibility disclosure and firm value of family firms with non-family business firms. This study was conducted with a sample of 245 Indian companies over 5 years and the results show that ESG disclosures do not significantly explain the firm value (measured as Tobin’s q). A significant difference between the ESG disclosure practices of family and non-family firms was found. The family firms make higher ESG disclosures. These results document another advantage of family-ownership in today’s era of responsible investing. The study has implications for the investors in investment decision making and screening of investments.
Published
Jul 14, 2020
How to Cite
SHARMA, Meena; KUMAR, Raj; KAUR, Rajbir. CORPORATE SUSTAINABILITY AND FAIR MARKET VALUE: A STUDY OF INDIAN FAMILY VERSUS NON FAMILY FIRMS. Asia-Pacific Management Accounting Journal, [S.l.], v. 15, n. 2, july 2020. ISSN 2550-1631. Available at: <http://arionline.uitm.edu.my/ojs/index.php/APMAJ/article/view/1140>. Date accessed: 18 sep. 2020. doi: http://dx.doi.org/10.24191/apmaj.v15i2.1140.