Does sustainability index matter to the hospitality industry?
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Date
2020
Authors
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Journal ISSN
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Publisher
Elservier
Abstract
Employing the Dow Jones Sustainability North America Index (DJSI) as a proxy for a firm’s socially responsible
investments, this research analyzes whether DJSI generates short- and long-run impacts on hospitality firms’
financial values. Results indicate that due to characteristics intrinsic to the hospitality industry, hospitality firms’
financial performance is more sensitive to addition or deletion events, as compared with the performance of nonhospitality firms, whether measured over the short run or long run. In addition, some firm features, including
size, Tobin’s Q, and institutional ownership, might also intensify the abnormal returns of firms. The findings
would throw some light on environmental, social, and governance (ESG) literature and pave the way to develop
new socially responsible investment strategies and ESG-oriented practices that help consolidate tourism-related
firms’ financial performance and positively benefit society.
Description
Tourism Management 81 (2020) 104158
Keywords
Sustainability; Dow jones sustainability index; Event study; Financial performance