We would like to invite you to a research seminar by Gonul Colak, Professor of Finance at Hanken School of Economics and Professor of Accounting and Finance at the University of Sussex.
Paper: The Costs of Being Sustainable: Cross-Country Evidence
Authors: Jukka Kettunen (Hanken School of Economics), Gonul Colak (University of Sussex and Hanken School of Economics)
Abstract: We examine whether the adoptions of mandatory CSR disclosure laws – regulations intended to increase transparency and encourage companies to develop a responsible approach to business – increase primarily administrative or productional expenses. Using the staggered adoption of CSR disclosure laws in Europe, we find that the adoption increases administrative, but not productional costs, and the costs as well as cost stickiness vary by country. For a representative firm the average annual increase in SG&A is $12.22 million subsequent to the adoption. Adoption costs are pronounced in shareholder-oriented countries characterized with common law legal origin, high shareholder litigation risk and lenient employment protection, while the stickiness of adoption costs is highest in stakeholder-oriented countries. Overall, our results imply that the adoption begins primarily as an administrative reform and the adoption is more expensive in shareholder-oriented countries.
The seminar will take place on Thursday, May 26, in Room 105 since 17:00.
The paper is available here.
Autor - doc. PhDr. Martin Gregor Ph.D.