Revisiting the relationship between environmental and financial performance in Chinese industry

Qi, Guoyou; Zeng, Saixing; Shi, Jonathan; Meng, Xiaohua; Lin, Hong; Yang, Qishen

doi:10.1016/j.jenvman.2014.07.010

Cited by 101 publications

(91 citation statements)

References 82 publications

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“…In this regard, a large number of authors [9,[11][12][13][14] argue that those firms that integrate environmental, social and governance factors into management can create and maintain value for their stakeholders by providing better products and services, attracting and retaining higher quality employees, enhancing the company's reputation, increasing customer loyalty, gaining social legitimacy and improving risk management among others. Likewise, from the resource-based perspective [15,16], those firms with strong extra-financial capabilities (e.g., environmental ones) improve the organizational process to efficiently and competitively use of tangible and intangible assets boosting their capacity for generating economic results.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…A possible explanation of the mix findings in the ESG-EP relationship could be that previous research has omitted the interactions between different ESG dimensions and their moderating effects [16,25]. To measure ESG performance, many previous studies have been based on a rating that includes different dimensions.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…The starting point of the sample includes data from 506 firms and 3809 firm-year observations. This study uses a lag-structure for the dependent variable based on previous research [16,39]. This structure results in a loss of observations related to a specific year, 2002.…”

Section: Sample Selectionmentioning

confidence: 99%

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The Effect of Environmental, Social and Governance Consistency on Economic Results

2016

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This study aims to explore how environmental, social and governance (ESG) consistency impacts the firm performance, specifically, the relationship between ESG performance and economic performance (EP). This study posits that the company's commitment and effectiveness towards the creation of consistent competitive advantage in environmental, social and governance dimensions constitutes an intangible value that leads improvements in corporate performance. This work uses a panel dataset for listed firms of the EU-15 countries during the period 2002 to 2011 and applies Generalized method of moments (GMM) estimator system in order to address the potential unobserved heterogeneity and dynamic endogeneity. The main results reveal that the global effect of ESG performance on EP for those firms that present interdimensional consistency is greater than the rest, except for higher levels of ESG performance.

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Section: Literature Review and Hypothesesmentioning

confidence: 99%

Section: Literature Review and Hypothesesmentioning

confidence: 99%

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The Effect of Environmental, Social and Governance Consistency on Economic Results

2016

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“…For example, Eanhart and Lizal [72], Galdeano-Gómez et al [74] and Yamaguchi and van Kooten [75], although they had similar research goals, employed different environmental and/or economic indicators to measure corporate performance. This was also true for the following studies: Menguc et al [79], Molina-Azorin et al [50], Yu et al [81], López-Gamero et al [82], Horvathova [89], Perez-Calderon et al [91], Fujii et al [63], De Burgos-Jimenez et al [96], Qi et al [100], and Sánchez-Medina et al [106]. Moreover, this unjustified difference of performance variables was also present in studies with specific goals, such as papers with a greenhouse gas focus (see Dragomir [94], Wang et al [101], Misani and Pogutz [103], and Trumpp and Guenther 2015 [71]) or papers that focused on a financial crisis period (see Gallego-Alvarez et al [97], Muhammad et al [104], Muhammad et al [105], and Trumpp and Guenther [71]).…”

Section: Trumpp Andmentioning

confidence: 68%

Exploring the Direction on the Environmental and Business Performance Relationship at the Firm Level. Lessons from a Literature Review

et al. 2016

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Abstract:The interest of scientists and companies in understanding the business implications of environmental investment is timely; however, a dilemma remains at the firm level: is the environment a "strategic competitive factor", as in the "Porter point of view", or is it a "luxury good", as in the "Wagner point of view"? Our research contributes to this debate through a review of the papers published in scientific journals between 2000 and 2015 that discussed the direction of the relationship between the environmental and business performances of enterprises. The objectives of the research are: (a) to verify if there is an agreement in the scientific literature of the last 15 years about the "Porter-Wagner dilemma" when focusing at the firm level; (b) to underline the prevalent cause and effect directions of the relationship between environmental and business performance; and (c) to investigate the reasons for any disagreements in this topic among the scientists. The results show that the main agreement regards the positive bi-directional relationship, as a virtuous cyclic approach with mutual effects between business and environmental performance; nevertheless, more complex hypotheses emerge, such as nonlinear and/or conditional relationship, that need to be further explored. On the other hand, the Porter-Wagner dilemma remains, and the main reason for the non-agreement among scientists can be due to the several non-homogeneous variables considered in the analyses. Thereafter, as lesson for scientists, the priority is to share univocal methods to measure firms' environmental and business performances.

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“…8;Tung et al 2014;Sahu & Narayanan, 2011). To measure the financial performance of the sample firms, the present study considered the accounting based measures such as Return on Assets (ROA), Return on Equity (ROE), Return on Capital Employed (ROCE), and Return on Sales (ROS) (Qi, et al, 2014;Iwata & Okada, 2011;Elsayed & Paton, 2005;Hart & Ahuja, 1996).…”

Section: Estimation Techniques and Econometric Frameworkmentioning

confidence: 99%

Testing Environmental Kuznets Curve Hypothesis at Firm Level in India

Vinayagamoorthi¹,

Selvam²,

Lingaraja³

et al. 2015

JSD

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All over the world, deterioration of environmental quality has been considered as a hot issue. The growing number of industries is one of the major reasons for the enhanced level of pollution and fast degradation of environmental resources. This situation urges the corporates to involve themselves in socially responsible activities and to periodically assess the ecofriendly technologies. This paper proposes to investigate the Environmental Kuznets Curve Hypothesis, with reference to sample companies listed in BSE S&P -500, over the period 1 st April 2005 to 31 st March 2014. In order to determine the existence of EKC relationship, the sign and magnitude of regression coefficients were analyzed. The results exhibited U shaped relationship for ROE, ROCE, and ROS. At the same time, EKC relationship, by way of inverted U shaped curve, was found for ROA. Based on the empirical findings of this study, some suggestions have been put forward to the corporates and policy makers, to control the level of energy intensity, by implementing eco-friendly technologies.

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Revisiting the relationship between environmental and financial performance in Chinese industry

Cited by 101 publications

References 82 publications

The Effect of Environmental, Social and Governance Consistency on Economic Results

The Effect of Environmental, Social and Governance Consistency on Economic Results

Exploring the Direction on the Environmental and Business Performance Relationship at the Firm Level. Lessons from a Literature Review

Testing Environmental Kuznets Curve Hypothesis at Firm Level in India

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