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Economic Sustainability, Innovation, and the ESG Factors: An Empirical Investigation

Author

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  • Luca Di Simone

    (Department of Economic and Social Sciences, Università Cattolica del Sacro Cuore, 29122 Piacenza, Italy)

  • Barbara Petracci

    (Department of Management, University of Bologna, 40126 Bologna, Italy)

  • Mariacristina Piva

    (Department of Economic Policy, Università Cattolica del Sacro Cuore, 29122 Piacenza, Italy)

Abstract

The growing attention to sustainability has generated increasing interest in its relevant determinants and a possible relationship with economic growth’s main drivers. Our paper contributes to this literature in three ways, by proposing the following empirical analysis of most innovative companies listed worldwide (909 firms over the 2013–2017 time-span): firstly, market-perceived innovation—proxied by the interaction between R&D intensity and the market-to-book ratio—has a positive impact on economic sustainability; secondly, when the three ESG pillars are considered, the social one turns out to have the highest effect on economic sustainability; thirdly, results are confirmed even when we control for context-specific conditions.

Suggested Citation

  • Luca Di Simone & Barbara Petracci & Mariacristina Piva, 2022. "Economic Sustainability, Innovation, and the ESG Factors: An Empirical Investigation," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2270-:d:751314
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