Type and Duration
FFF-Förderprojekt, November 2024 until October 2025Coordinator
Strategic ManagementMain Research
Growth and ComplexityDescription
Over the past three decades, the number of companies measuring and reporting environmental, social and governance (ESG) data has increased significantly worldwide. A key reason for this is the assumption that information on ESG-relevant issues is a key driver of a company's financial performance. However, several studies empirically show that this is only partially true. The reasons for this are diverse, including poor reporting quality, lack of reporting consistency and insufficient reporting standardization arguments. Using innovative quantitative models, this proposal, hence, aims to develop an objective, reliable and valid approach that addresses these shortcomings. Specifically, it should be empirically shown that resource efficiency, defined as the extent to which economic value is created per unit of resource consumed, responds to the objective of superior economic and social performance. By demonstrating "alpha" and identifying sustainable companies, this novel quantitative approach makes a significant contribution to theory and practice.Practical Application
The results of this application do not only contribute to several financial theories but also help to meet the market demand for sustainable products with above-average performances. In particular, the factors developed in this application can be used to categorize and select suitable companies and, therefore, be helpful in setting up funds that stand out strongly from other products on the market.Reference to Liechtenstein
This project contributes to the value creation of the university, the country and the region in many ways. Amongst others, this application addresses the practical and theoretical research priorities of the University of Liechtenstein by highlighting the importance of the topics of innovation, sustainability and social responsibility. The research topic also fits in perfectly with the focus of the Chair of Entrepreneurship and Technology at the Department of Entrepreneurship and Management and promotes interdisciplinary exchange in the areas of innovation, strategy and sustainable finance. The benefits for the country and the region are also diverse. For instance, the development of resource efficiency contributes to the promotion of green and sustainable financial practices, which both meets the demand for ‘green solutions’ and strengthens the country's pioneering role in terms of sustainability. In addition, this application promotes social engagement and commitment to innovative, sustainable and financially viable solutions in Liechtenstein.Keywords
Sustainability, Financial Performance, Alpha, DEA, Factor Investing
