Corporate Sustainability Performance and Systematic Risk

Considering that today, the success and sustainability of business, in addition to income, is measured based on non-financial indicators related to the company's social, environmental and governance performance, the purpose of this research is to investigate the relationship between the non-financial dimensions of corporate sustainability performance and systematic risk.

In this research, from the statistical population of companies listed on the Tehran Stock Exchange, a sample of 96 companies during the years 1393 to 1397 was selected by systematic removal method and data were analyzed using multivariate linear regression.

The results of the research hypothesis test indicate that the sustainability performance of companies has no significant relationship with systematic risk.

In addition to the mixed experimental results of the link between the non-financial and financial dimensions of the companies' performance, according to the findings of the current research, the social, environmental and corporate governance performance does not have the ability to influence the inherent risk of the market; Of course, according to some findings, the instability of financial markets can play a moderating role in the nature and strength of risk relations and non-financial performance of companies.

Contribution: 

The findings of this research can help business organizations, managers and investors in understanding the impact of sustainability performance in creating shared value for stakeholders, in order to make investment decisions based on sustainability criteria.