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Contribution Details

Type Master's Thesis
Scope Discipline-based scholarship
Title Sustainability Reporting and Corporate Innovation
Organization Unit
  • Lin Lu
  • Steven Ongena
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Date 2023
Abstract Text In this thesis, I examine the impact of sustainability reporting (SR) on corporate innovation measured by the number of patents, the number of forward citations, and the real value of patents, based on the U.S.-listed firms from 1989 to 2020. I employ the Propensity ScoreMatching approach to obtain SR firms (treatment group) and matched non-SR firms (control group). In the matched sample, I apply the Difference-in-Differences approach to compare how sustainability reports change corporate innovation. The results indicate that sustainability information disclosure has no significant relationship with innovation output. To make the analysis robust, I conduct two tests. The first test is the industrial analysis. I choose firms in manufacturing industries since these industries have sufficient observations. I discover that the impact of sustainability reporting on innovation output is still insignificant. The second one is using an alternate event window. The sustainability reporting impact on innovation remains insignificant. Then, I performadditional analysis in the sample without inactive companies. The finding is that sustainability reporting negatively influences innovation captured by the number and the economic value of patents. This study helps to fill the gap in the existing literature and provides policy recommendations for regulators and some insight for companies.
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