Using a two-regime switching regression approach to account for the endogeneity of sustainability reputation, this study investigates whether the market valuation of two summary accounting measures, book value of equity and net income, is higher for firms with a reputation for sustainability...

This study provides empirical evidence on howcorporate sustainability performance (CSP), as proxied bymembership of the Dow Jones sustainability index, isreflected in the market value of equity. Using a theoreticalframework combining institutional perspectives, stakeholdertheory, and...