Duong, L N K; Wang, J X; Wood, L C; Reiners, T and Koushan, M (2021) The value of incremental environmental sustainability innovation in the construction industry: An event study. Construction Management and Economics, 39(5), pp. 398-418. ISSN 01446193
Abstract
Investment in the innovation of environmental sustainability in construction has been encouraged due to the industry's resource-intensity. However, it remains unclear how to convince shareholders and construction companies to invest in environmental innovations. This research used the event study method with a sample of 129 announcements in the construction industry from 2011 to 2017 to investigate the relationship between incremental environmental sustainability innovation and the stock market reactions of construction firms. The research finds evidence that the stock market reaction has a strong positive relationship with these announcements. There is also evidence for a relationship between strategic alliance, capital turnover, and the project start date with the stock market reaction. The results provide insight into the benefits of incremental innovations in the construction industry and extend the literature of environmental sustainability innovation by considering contributing factors that affect the relationship between environmental sustainability innovation and firm performance. They provide a useful reference for shareholders to integrate environmental sustainability innovation into their business strategies and allocate their resources more efficiently.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction industry; event-study; innovation; stock market; sustainability |
| Index terms: | construction firm, construction company, business strategy, turnover, environmental sustainability, evidence, strategic alliance, firm performance, construction industry |
| Subjects: | partnership management, industry analysis, business analysis, health safety and environment, business management, evaluation and assessment methods, organization, business |
| Topics: | Stakeholder Management, Business Strategy, Health and Safety, Research Practice |
| Descriptive scope: | 4 PCTA |
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