Ethisphere Firms
A Study of Ethics and Governance
Bibliographic Data
| ID | 22418521 |
|---|---|
| Authors | Mustafa Dah (Kassar School of Business Lebanese American University Beirut Lebanon), Mohammad I Jizi (J. Whitney Bunting College of Business & Technology Georgia College & State University Milledgeville Georgia USA), Dana Wallace (0000-0001-7407-9143, Kenneth G. Dixon School of Accounting University of Central Florida Orlando Florida USA, corresponding author) |
| Year | 2026 |
| Publication date | 2026-07-12 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Business Strategy and the Environment (JOURNAL) |
| Journal identifiers | ISSN: 0964-4733 • E-ISSN: 1099-0836 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/bse.71278 |
| OpenAlex | W7168099864 |
| Language | EN |
| References cited | 93 |
We investigate whether firms listed by Ethisphere as the “World's Most Ethical Companies” exhibit a sincere commitment to ethical business practices by examining their corporate governance. Using a sample of S&P 1500 companies from 2007 to 2022, we find that Ethisphere firms demonstrate superior board monitoring efficiency, as indicated by higher CEO turnover‐performance sensitivity, greater pay‐for‐performance and pay‐for‐risk sensitivity, and lower discretionary accruals. Additionally, Ethisphere firms reveal greater investment efficiency and corporate innovation, indicating more effective board advising. Our findings highlight that Ethisphere firms foster a robust governance environment and mitigate agency issues, resulting in enhanced financial performance. Unlike traditional ESG scores, which often face criticism for their variability and reliability, Ethisphere‐listing provides a more consistent and comprehensive indicator of firms' ethical culture. Our study suggests that firms with exemplary ethical profiles, indicated by Ethisphere‐listing, are associated with greater director awareness and efforts towards stakeholders' best interests.
Agency cost · Business ethics · Corporate governance · Criticism · Corporate Finance and Governance · Corporate Social Responsibility Reporting · Ethics in Business and Education
Strategic Management
Managerial incentives and risk-taking☆
The Stakeholder Theory of the Corporation
Nonfinancial Disclosure and Analyst Forecast Accuracy
Ebalance
Industry costs of equity
The relationship between corporate social responsibility and shareholder value
Corporate Social Responsibility and Investment Efficiency
Audit committee, board of director characteristics, and earnings management
Performance matched discretionary accrual measures
How does financial reporting quality relate to investment efficiency?
What Matters in Corporate Governance?
Theory of the firm
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity
Stakeholder Theory
How Have Corporate Codes of Ethics Responded to an Era of Increased Scrutiny
A Theoretical Framework for Monetary Analysis
Performance Pay and Top-Management Incentives
Job Market Signaling
Corporate Governance and Firm Value
| Citation velocity | historical |
|---|---|
| Highly cited | No |