The market value of sustainable practices in the luxury industry: An identity mismatch and institutional theoretical perspective

Yunting Feng; Xun Tong; Qinghua Zhu

doi:10.1016/j.tre.2020.101919

The market value of sustainable practices in the luxury industry: An identity mismatch and institutional theoretical perspective

Yunting Feng^*, Xun Tong, Qinghua Zhu

^*Corresponding author for this work

Operations Management & Operations Research

Research output: Contribution to journal › Article › Academic › peer-review

2 Citations (Scopus)

Abstract

Shareholders of luxury firms uphold a view of identity mismatch between being luxury and sustainable. We examine the associated market value with sustainable practice adoption of luxury firms from an institutional theoretical lens and an identity mismatch perspective. Based on 289 announcements made by public luxury firms, results from event study show that the stock market reacts negatively to the announcements of sustainable practices. Nevertheless, the negative effect attenuates in more recent year announcements, and more profitable and smaller luxury firms. Our results alert managers to better align their sustainability goals with luxury firms' identity and the ever-changing environment.

Original language	English
Article number	101919
Number of pages	16
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	137
DOIs	https://doi.org/10.1016/j.tre.2020.101919
Publication status	Published - May-2020

Keywords

Sustainable practices
Luxury industry
Market value
Institutional norm
Identity mismatch
Event study
CORPORATE SOCIAL-RESPONSIBILITY
BUDGET ALLOCATION
MANAGEMENT
COORDINATION
OPERATIONS
INERTIA
IMPACT
EVENT
FIRMS

Access to Document

10.1016/j.tre.2020.101919

The market value of sustainable practices in the luxury industryFinal publisher's version, 0.99 MBLicence: Taverne

Cite this

@article{071c38be86b34b6db24912d1a26471b5,

title = "The market value of sustainable practices in the luxury industry: An identity mismatch and institutional theoretical perspective",

abstract = "Shareholders of luxury firms uphold a view of identity mismatch between being luxury and sustainable. We examine the associated market value with sustainable practice adoption of luxury firms from an institutional theoretical lens and an identity mismatch perspective. Based on 289 announcements made by public luxury firms, results from event study show that the stock market reacts negatively to the announcements of sustainable practices. Nevertheless, the negative effect attenuates in more recent year announcements, and more profitable and smaller luxury firms. Our results alert managers to better align their sustainability goals with luxury firms' identity and the ever-changing environment.",

keywords = "Sustainable practices, Luxury industry, Market value, Institutional norm, Identity mismatch, Event study, CORPORATE SOCIAL-RESPONSIBILITY, BUDGET ALLOCATION, MANAGEMENT, COORDINATION, OPERATIONS, INERTIA, IMPACT, EVENT, FIRMS",

author = "Yunting Feng and Xun Tong and Qinghua Zhu",

year = "2020",

month = may,

doi = "10.1016/j.tre.2020.101919",

language = "English",

volume = "137",

journal = "Transportation Research Part E: Logistics and Transportation Review",

issn = "1366-5545",

publisher = "PERGAMON-ELSEVIER SCIENCE LTD",

}

TY - JOUR

T1 - The market value of sustainable practices in the luxury industry

T2 - An identity mismatch and institutional theoretical perspective

AU - Feng, Yunting

AU - Tong, Xun

AU - Zhu, Qinghua

PY - 2020/5

Y1 - 2020/5

N2 - Shareholders of luxury firms uphold a view of identity mismatch between being luxury and sustainable. We examine the associated market value with sustainable practice adoption of luxury firms from an institutional theoretical lens and an identity mismatch perspective. Based on 289 announcements made by public luxury firms, results from event study show that the stock market reacts negatively to the announcements of sustainable practices. Nevertheless, the negative effect attenuates in more recent year announcements, and more profitable and smaller luxury firms. Our results alert managers to better align their sustainability goals with luxury firms' identity and the ever-changing environment.

AB - Shareholders of luxury firms uphold a view of identity mismatch between being luxury and sustainable. We examine the associated market value with sustainable practice adoption of luxury firms from an institutional theoretical lens and an identity mismatch perspective. Based on 289 announcements made by public luxury firms, results from event study show that the stock market reacts negatively to the announcements of sustainable practices. Nevertheless, the negative effect attenuates in more recent year announcements, and more profitable and smaller luxury firms. Our results alert managers to better align their sustainability goals with luxury firms' identity and the ever-changing environment.

KW - Sustainable practices

KW - Luxury industry

KW - Market value

KW - Institutional norm

KW - Identity mismatch

KW - Event study

KW - CORPORATE SOCIAL-RESPONSIBILITY

KW - BUDGET ALLOCATION

KW - MANAGEMENT

KW - COORDINATION

KW - OPERATIONS

KW - INERTIA

KW - IMPACT

KW - EVENT

KW - FIRMS

U2 - 10.1016/j.tre.2020.101919

DO - 10.1016/j.tre.2020.101919

M3 - Article

VL - 137

JO - Transportation Research Part E: Logistics and Transportation Review

JF - Transportation Research Part E: Logistics and Transportation Review

SN - 1366-5545

M1 - 101919

ER -