ISO 14001 and Financial Performance: Is the Accreditation Financially Worth It for Malaysian Firms

Hazudin, Siti Fahazarina; Mohamad, Siti Aishah; Azer, Ilyani; Daud, Rozain; Paino, Halil

doi:10.1016/s2212-5671(15)01131-4

Cited by 20 publications

(21 citation statements)

References 12 publications

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“…It was introduced by the International Organization of Standardization (ISO) based in Geneva (Corbett & Kirsch, 2001). ISO 14001 require firms' management processes and procedures to recognize, measure, and minimize their negative impacts on the environment (Hazudin et al, 2015). An independent third party performs audit and certifies the compliance with the established standards, which confirms the improvement in firms' performance under the agenda of environmental protection (Jiang & Bansal, 2003).…”

Section: Financial Impacts Of Ecmentioning

confidence: 99%

Green Behavior and Financial Performance: Impact on the Malaysian Fashion Industry

et al. 2020

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The dogma of conscious environmental behavior has laid the paradigm for sustainable consumer behavior. Modern-day corporates have introduced innovative business models to add a new value to manage fluctuations in consumer behaviors and rejuvenate their financial performance. Similarly, in fashion industry, textile firms have warmly embraced the new business models and widely adopted environmental management systems (EMSs) to contribute to environmental sustainability. This research aims to explore eco-consumerism and its impacts on the financial performance of textile firms in Malaysia. The secondary data of textile firms’ performance from 2013 to 2015 were collected from an online database and annual reports of firms’ web portals. The findings reveal that the textile firms which successfully adopted EMS such as ISO 14001 show significant changes in performance compared with firms which are yet to adopt EMS certification. Moreover, eco-consumerism directly impacts EMS-adopted firms’ performance. Our findings are robust for practical, research, and managerial implications to classify and understand the impacts of consumers’ green behavior on corporate performance. This study contributes to understand the influence of consumers’ eco-behavior to adopt EMS and its impact on the financial performance of textile firms in Malaysia.

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Section: Financial Impacts Of Ecmentioning

confidence: 99%

Green Behavior and Financial Performance: Impact on the Malaysian Fashion Industry

et al. 2020

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“…ISO 14001 belum dapat mempengaruhi kinerja keuangan suatu perusahaan, hal ini dikarenakan public masih menilai bahwa sertifikasi ISO 14001 hanya sebagai bentuk kepedulian perusahaan terhadap masalah lingkungan dan belum memiliki manfaat ekonomis bagi mereka. ISO 14001 hanya menggambarkan reputasi baik perusahaan terhadap masalah lingkungan kepada publik, dan hal tersebut belum dinilai publik memiliki pengaruh terhadap kinerja keuangan perusahaan (Hazudin et al, 2015). Dibutuhkan waktu yang lebih lama, bahkan sampai dekade, untuk mengetahui pengaruh ISO 14001 terhadap kinerja keuangan dikarenakan optimalisasi sistem ISO 14001 lebih sulit dibandingkan sistem ISO lainnya (Aprilasani, 2017).…”

Section: Modelunclassified

“…Dibutuhkan waktu yang lebih lama, bahkan sampai dekade, untuk mengetahui pengaruh ISO 14001 terhadap kinerja keuangan dikarenakan optimalisasi sistem ISO 14001 lebih sulit dibandingkan sistem ISO lainnya (Aprilasani, 2017). Hasil penelitian ini sejalan dengan hasil penelitian Hazudin et al (2015), Andayani (2015), dan Aprilasani et al (2017) yang menjelaskan bahwa tidak adanya pengaruh ISO 14001 dengan kinerja keuangan perusahaan.…”

Section: Modelunclassified

“…Karena itu, investor juga akan memilih berinvestasi di green companies dalam jangka panjang (Tze SanOng et al, 2016). Namun hasil penelitian ini berbeda dengan hasil penelitian yang dilakukan olehHazudin et al (2015),Andayani (2015), dan Aprilasani et al (2017) yang menjelaskan bahwa tidak adanya pengaruh ISO 14001 terhadap kinerja keuangan perusahaan. Berdasarkan hasil penelitian sebelumnya yang berbeda, serta bukti yang belum kuat, maka hal ini memotivasi peneliti untuk dapat meneliti lebih lanjut mengenai Environmental Performance, Environmental Cost, ISO 14001 dan Financial Performance pada seluruh perusahaan non keuangan yang terdaftar di Bursa Efek Indonesia dimana dari hasil penelitian sebelumnya hanya berfokus pada perusahaan manufaktur.…”

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The Influence of Environmental Performance, Environmental Cost and ISO 14001 on Financial Performance in Non-Financial Companies Listed on the Indonesia Stock Exchange

Ermaya

Mashuri

2020

NERACA : JURNAL AKUNTANSI TERAPAN

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This study aims to determine the effect of Environmental Performance, Environmental Costs and ISO 14001 on Financial Performance. The independent variable in this study was Environmental Performance measured by using PROPER, Environmental Costs measured by environmental costs incurred by companies, ISO 14001 measured by a dummy with a weight of 1 for companies that have ISO 14001 certification and 0 for and vice versa. The population in this study are all non-financial companies listed on the Indonesia Stock Exchange (IDX) with an observation period of 3 years, 2016- 2018, using a sampling method that is purposive sampling and the total sample obtained is 23 sample companies per year, 2 outlier samples , so that the total sample obtained in this study was 67 samples. The results of this study indicate that environmental performance has a significant positive effect on financial performance, environmental costs have a significant negative effect on financial performance, and ISO 14001 doesn't effect on financial performance.

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“…As of 2011, there were 5,189 firms in both stock exchanges (2,317 in NYSE and 2,872 in NASDAQ) (NASDAQ, 2013;NYSE, 2013). Using all of these listed firms, we searched the news about ISO 14001 certified firms from The Wall Street Journal, New York Times, Chicago Tribune, and Washington Post and the information from the internet search engines from 1996 to 2010.…”

Section: Data Collection and Analysismentioning

confidence: 99%

The effect of ISO 14001 on equity structure

Lee

Noh

Choi

et al. 2014

Industrial Management &Amp; Data Systems

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Purpose -The purpose of this paper is to investigate the effect of ISO 14001 certification on US public firms' equity structure regarding whether the typical heavy investment required for environmental management system is justified in terms of equity risk. Design/methodology/approach -This study employs the event study methodology and examines the pre-and post-movements of firms' equity structure around the ISO 14001 certification date. This study investigated 5,189 listed firms in the New York Stock Exchange and National Association of Securities Dealers Automated Quotation and the abnormal performance of firms' equity structure was measured by using four dependent variables (assets, liabilities, debt ratio (liabilities/equity), and market-to-book ratio of equity). Findings -The results showed that the adoption of ISO 14001 increased a firm's total assets, liabilities, and debt ratio in the long run, implying that pursuing the certification entails the increase in a firm's size and equity risk. The long-term movement of the market-to-book ratio of equity showed no abnormal performance, while it fluctuated in the short term. Practical implications -This study suggests that managers should consider the potential risk from a firm's equity structure when they decide to pursue the ISO 14001 certification. Originality/value -This study is the first effort to investigate the long-term effect of ISO 14001 certification on the firm's equity structure using the event study methodology in the USA.

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ISO 14001 and Financial Performance: Is the Accreditation Financially Worth It for Malaysian Firms

Cited by 20 publications

References 12 publications

Green Behavior and Financial Performance: Impact on the Malaysian Fashion Industry

Green Behavior and Financial Performance: Impact on the Malaysian Fashion Industry

The Influence of Environmental Performance, Environmental Cost and ISO 14001 on Financial Performance in Non-Financial Companies Listed on the Indonesia Stock Exchange

The effect of ISO 14001 on equity structure

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