IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v39y2021i5p398-418.html
   My bibliography  Save this article

The value of incremental environmental sustainability innovation in the construction industry: an event study

Author

Listed:
  • Linh N. K. Duong
  • Jason X. Wang
  • Lincoln C. Wood
  • Torsten Reiners
  • Mona Koushan

Abstract

Investment in the innovation of environmental sustainability in construction has been encouraged due to the industry's resource-intensity. However, it remains unclear how to convince shareholders and construction companies to invest in environmental innovations. This research used the event study method with a sample of 129 announcements in the construction industry from 2011 to 2017 to investigate the relationship between incremental environmental sustainability innovation and the stock market reactions of construction firms. The research finds evidence that the stock market reaction has a strong positive relationship with these announcements. There is also evidence for a relationship between strategic alliance, capital turnover, and the project start date with the stock market reaction. The results provide insight into the benefits of incremental innovations in the construction industry and extend the literature of environmental sustainability innovation by considering contributing factors that affect the relationship between environmental sustainability innovation and firm performance. They provide a useful reference for shareholders to integrate environmental sustainability innovation into their business strategies and allocate their resources more efficiently.

Suggested Citation

  • Linh N. K. Duong & Jason X. Wang & Lincoln C. Wood & Torsten Reiners & Mona Koushan, 2021. "The value of incremental environmental sustainability innovation in the construction industry: an event study," Construction Management and Economics, Taylor & Francis Journals, vol. 39(5), pages 398-418, May.
    • Handle: RePEc:taf:conmgt:v:39:y:2021:i:5:p:398-418
    DOI: 10.1080/01446193.2021.1901950
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01446193.2021.1901950
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01446193.2021.1901950?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lincoln C. Wood & Linh N. K. Duong & Jason X. Wang, 2022. "Business Process Improvement for Sustainable Technologies Investments in Construction: A Configurational Approach," Sustainability, MDPI, vol. 14(9), pages 1-14, May.
    2. Tian Tian & Ricky Cooper & Jiahao Deng & Qingquan Zhang, 2024. "Transforming Investment Strategies and Strategic Decision-Making: Unveiling a Novel Methodology for Enhanced Performance and Risk Management in Financial Markets," Papers 2405.01892, arXiv.org.
    3. Augustinas Maceika & Andrej Bugajev & Olga Regina Šostak & Tatjana Vilutienė, 2021. "Decision Tree and AHP Methods Application for Projects Assessment: A Case Study," Sustainability, MDPI, vol. 13(10), pages 1-33, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:39:y:2021:i:5:p:398-418. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.