Sustainability Performance and Its Impact on Financial Distress Risk—Evidence From STOXX Europe 600

IF 13.3 1区管理学 Q1 BUSINESS Business Strategy and The Environment Pub Date : 2025-03-27 DOI:10.1002/bse.4263

Marcel Seefloth, Florian Siedler, Christoph Kayser, Benedikt T. Retsch, Henning Zülch

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Abstract

Sustainability performance (SP) has emerged as a central topic on both corporate and political agendas worldwide. This study investigated the relationship between SP and financial distress risk (FDR) among European listed firms, addressing the growing importance of SP in financial decision-making. Utilising a panel dataset from LSEG Data & Analytics (formerly Refinitiv) for STOXX Europe 600 firms between 2016 and 2022, we performed regression analyses to examine the impact of SP on FDR, measured through alternating scores. In contrast to most existing research, we found SP to increase FDR for most analyses performed, with the effect varying by SP dimension. Because we found environmental and governance SP to increase FDR, we did not find an association between social SP and FDR in most analyses performed. Our findings provide practical and theoretical implications for firms, investors and policymakers concerning the influence of SP investments on FDR and potential SP overinvestments in Europe's latest sustainability regulatory setting.

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可持续发展绩效及其对财务困境风险的影响——来自斯托克欧洲600指数的证据

可持续发展绩效（SP）已成为全球企业和政治议程的中心话题。本研究调查了欧洲上市公司中SP与财务困境风险（FDR）之间的关系，以解决SP在财务决策中日益重要的问题。利用来自LSEG Data &；分析公司（前身为Refinitiv）对2016年至2022年期间斯托克欧洲600家公司进行了回归分析，通过交替得分来检验SP对FDR的影响。与大多数现有研究相反，我们发现SP增加了大多数分析的FDR，其效果因SP维度而异。因为我们发现环境和治理SP会增加FDR，所以在大多数分析中，我们没有发现社会SP和FDR之间的关联。我们的研究结果为企业、投资者和政策制定者提供了关于SP投资对FDR和潜在的SP过度投资的影响的实践和理论启示。

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来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.