Next Article in Journal
A Bamboo Treatment Procedure: Effects on the Durability and Mechanical Performance
Next Article in Special Issue
Circular Economy and Decision Models among European SMEs
Previous Article in Journal
A Parameter Selection Framework for Sustainability Assessment
Previous Article in Special Issue
Priorities of Coworking Space Operation Based on Comparison of the Hosts and Users’ Perspectives
Article Menu
Issue 9 (September) cover image

Export Article

Open AccessArticle
Sustainability 2017, 9(9), 1498;

Sustainability Matter and Financial Performance of Companies

Department of Corporate Finance, Faculty of Economics, University of Valencia, Avda de los Naranjos, s/n, E-46022 Valencia, Spain
Faculty of Economics and Business Administration, Catholic University of Valencia, Marquis of Campo Building, 34 Corona St, E-46003 Valencia, Spain
These authors contributed equally to this work.
Author to whom correspondence should be addressed.
Received: 25 July 2017 / Revised: 13 August 2017 / Accepted: 20 August 2017 / Published: 23 August 2017
(This article belongs to the Special Issue Entrepreneurial Sustainability: New Innovative Knowledge)
Full-Text   |   PDF [772 KB, uploaded 23 August 2017]   |  


The relationship between social and environmental performance and financial performance in companies has been a subject widely debated in the literature but the results obtained to date are not conclusive. This research employs the fuzzy-set qualitative comparative analysis (fsQCA) and offers new evidence on the relationship between both types of performance in a sample of companies listed in the Spanish capital market. Financial performance is measured by the return on equity (ROE) ratio, variable that is widely used in Finance and Accounting related research. The corporate performance of the company is measured by its inclusion or not in the sustainability index used as reference for the Spanish capital market, the FTSEGood4 IBEX. The model also incorporates other business variables that might affect the relationships between both types of performance, such as return on assets (ROA) ratio, company size, debt ratio, and industry. The results suggest that, for specific industries, return on assets is a necessary condition for companies with leverage to reduce the cost of debt due to their sustainability profile and consequently boost their ROE. View Full-Text
Keywords: fsQCA; financial performance; sustainability; social and environmental performance; FTSE4Good IBEX fsQCA; financial performance; sustainability; social and environmental performance; FTSE4Good IBEX

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Share & Cite This Article

MDPI and ACS Style

Lassala, C.; Apetrei, A.; Sapena, J. Sustainability Matter and Financial Performance of Companies. Sustainability 2017, 9, 1498.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top