The performance consequences following B certification and its renewal: a multi-country panel analysis

Purpose – This study explores whether obtaining B Certification affects company performance. Amid growing concerns over sustainability and greenwashing and grounded in signalling and legitimacy theories, our research examines how certification shapes market and operating performance. Design/methodology/approach – We analyse a multi-country longitudinal sample of 648 B Corps and noncertified firms using panel regressions and propensity score matching. Performance is measured through sales and return on assets (ROA), with fixed effects models and time-lagged regressions employed to assess both immediate and longer-term effects. Findings – B Certification increases short-term sales by enhancing legitimacy and customer trust. However, accounting performance initially drops due to substantial investments. Over time, firms depreciate the investments made to obtain certification and this process is reflected in an improvement in ROA and in the dissipation of the negative effect of certification. Research limitations/implications – This study focuses on European countries where sustainability issues receive considerable attention, which may limit the generalisability of the findings to different institutional contexts. Practical implications – Managers should view certification as a long-term strategic investment, not a shortterm cost. Communicating benefits helps engage stakeholders and mitigate scepticism. Social implications – B Certification strengthens stakeholder trust and counters corporate social responsibilitywashing, contributing to more credible and transparent sustainability practices. Originality/value – This is the first large-scale, longitudinal, multi-country study to overcome the small, single-country samples that dominate prior research. It clarifies how B Certification affects both market and accounting performance over time, offering a more comprehensive perspective on firm outcomes. Moreover, the study adopts a longitudinal design that tracks the impact of certification across multiple postcertification years.