Kajander, J K; Sivunen, M; Vimpari, J; Pulkka, L and Junnila, S (2012) Market value of sustainability business innovations in the construction sector. Building Research & Information, 40(6), pp. 665-678. ISSN 0961-3218
Abstract
The possible connection between sustainability innovations and the market capitalization of construction sector companies is examined. This is the first known study to test statistically the connection between sustainability innovations and the market value of companies in the construction sector. An event study model is used to analyse sustainability innovation announcements and financial information of large construction sector companies in a number of countries. The main finding of the analysis is that a positive and statistically significant association exists between sustainability innovation announcements and the market value of companies in the construction sector. According to the results, sustainability innovation announcements explain an increase of 0.82% in the market capitalization of the studied companies. The findings are in line with earlier studies suggesting that investments of construction sector companies in sustainability can lead to the creation of economic value. The results imply that sustainability innovations are relevant to the top management of companies operating in the construction sector regarding business development. In addition, information on sustainability innovations can be useful to stock market investors for assessing the future growth potential of construction companies.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | business performance; construction firms; construction sector; innovation; market value; sustainability |
| Index terms: | top management, business performance, sustainability innovation, construction sector, business development, investor, construction company, construction firm |
| Subjects: | organization, business, sociology, sustainable practices, industry analysis, performance measurement, management |
| Topics: | Quality Management, Organizational Design, Business Strategy, Research Practice, Stakeholder Management, Sustainability |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here