Theoretical Drivers (Inputs)

Stakeholder Theory (Freeman, 1984)- Builds Trust & Legitimacy

Signaling Theory (Spence, 1973)- Reduces Information Asymmetry

Resource-Based View (Barney, 1991)- Creates Competitive Advantage

Transmission Mechanism- Risk Reduction & Strategic Efficiency

Market Result (Outcome)- Higher Firm Valuation(P/E, Tobin’s Q, ROE)

diagram