Take your time: Examining when green innovation affects financial performance in multinationals

Rezende, Lígia de Azevedo; Bansi, Ana Claudia; Alves, Marlon Fernandes Rodrigues; Galina, Simone Vasconcelos Ribeiro

doi:10.1016/j.jclepro.2019.06.135

Cited by 165 publications

(111 citation statements)

References 35 publications

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“…Managers should be more concerned with waste prevention, along with end-of-pipe treatment [ 26 ]. Furthermore, directors should permanently exhibit a positive attitude toward sustainability through constant investments in green innovation [ 87 ]. Hence, ecological modernization should be considered by executives so as to support companies in accomplishing waste lessening or removal, resource recovering and dematerialization, and the reuse of goods [ 86 ].…”

Section: Discussionmentioning

confidence: 99%

“…The selected variables are described in Table 4 . Consistent with earlier research, in order to measure firm performance, the quantitative investigation comprised both accounting measures—such as return on assets [ 2 , 19 , 20 , 25 , 26 , 30 , 32 , 33 , 34 , 35 , 39 , 41 , 77 , 78 , 85 , 86 , 87 , 88 , 99 , 100 , 101 ], return on common equity [ 19 , 20 , 25 , 30 , 32 , 33 , 39 , 42 , 44 , 86 , 99 ], return on capital [ 19 , 20 ], and return on invested capital [ 25 ]—and market-based measures of performance like price-to-book value [ 34 ]. Additionally, several measures of firm characteristics were included in order to counteract any bias and error that may have distorted the association among selected variables [ 41 ].…”

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

Simionescu

Gherghina

Sheikha

et al. 2020

IJERPH

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This paper aimed to investigate the impact of water, waste, and energy consumption on firm performance for a sample of enterprises that belong to the S&P 500 Information Technology sector over the period of 2009–2020. The quantitative framework covered both accounting (e.g., return on assets—ROA; return on common equity—ROE; return on capital—ROC; return on invested capital—ROIC) and market-based measures of performance (e.g., price-to-book value—PB), alongside firm and corporate governance specific variables. By estimating multivariate panel data regression models, the empirical results provided support for a negative impact of total water use on PB but a positive effect on ROA. With reference to the total waste, the econometric outcomes revealed a negative influence on the entire selected performance measures, whereas total energy consumption did not reveal any statistically significant influence.

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Section: Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

Simionescu

Gherghina

Sheikha

et al. 2020

IJERPH

View full text Add to dashboard Cite

show abstract

“…In their study on the relationship between green innovation and the corporate performance of Chinese listed companies between 2000 and 2010, Zhang et al (2019) found that green innovation can improve the sales growth rate of enterprises, and the economic consequences of green innovation have been lagging behind for three years, which is a powerful verification of the strong Porter-hypothesis [1]. When Rezende et al (2019) studied 356 multinational companies in Brazil, they found that the impact of green innovation on corporate financial performance was not evident within the same year but showed a significant positive impact in the following years [19]. However, Wang et al (2019), using China's macro-level data from between 1990 and 2015, came to different conclusions.…”

Section: Green Innovation and Firm Valuementioning

confidence: 99%

The Interaction Effect between ESG and Green Innovation and Its Impact on Firm Value from the Perspective of Information Disclosure

2020

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Few studies have been conducted on whether the coexistence of green innovation and corporate social responsibility (CSR) has a favorable interaction effect on firm value. This interaction effect is of great significance for enterprises balancing resource allocation between two factors in the future. Meanwhile, information disclosure can reflect the efforts of enterprises in taking on CSR. Therefore, taking China's listed companies as an example, this paper studies the interaction effect of CSR after being divided into the three different dimensions of environment, society, and governance (ESG) and green innovation on firm value. The quantile regression method can reflect the impact of CSR and green innovation on the firm value of different levels. The study finds that:(1) green innovation can promote the improvement of medium-and high-level firm value; (2) only the disclosure of environmental and social information can have a positive impact on firm value; (3) the interaction effect between green innovation and social disclosure on firm value is a substitution effect, which will gradually weaken with the increase of firm value. This paper proposes that relevant departments should guide green funds into enterprises with capital constraints to alleviate the issue of fund crowding into CSR and green innovation.

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“…Pätäri, Arminen, Tuppura, and Jantunen () perform a regression for the energy industry in order to analyze Granger causality between corporate social responsibility and corporate FP. Also, Rezende et al () and Fernández‐Cuesta, Castro, Tascón, and Castaño () used panel regression analysis to evaluate the role of green innovation intensity on FP. The first with data from 356 multinationals firms and the second with all listed firms included in the main stock index of 16 European countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between emissions reduction and financial performance: Are Portuguese companies in a sustainable development path?

Robaina

Madaleno

2019

Corp Soc Responsibility Env

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Companies are increasingly adopting strategies that simultaneously reduce their negative impact on the environment and minimize the extraction of natural and energy resources, used as inputs in their production process. The concern for the sustainable development of countries and regions and environmental sustainability of companies is increasingly present. Nevertheless, does it make up for the increased costs to protect the environment? The objective of this study is to evaluate how the environmental performance (EP) and the financial performance (FP) of companies are related, applying to the specific case of Portuguese companies during the 2008-2016 period.The relationship between pollution and FP reveals to be positive. Still, firms regard EP as additional costs, and these efforts do not seem to be strong enough to lead to a better FP. Both munificence and resource slack are included and reveal to have positive effects over FP and in the EP-FP relationship. Highlights• Pollution and financial performance relationship is positive (negative EP-FP link).• Environmental performance are additional costs; firms favor financial performance.• Munificence and slack have positive effects over financial performance.• Munificent environments provide an opportunity for environmental investments.• Scarce slack resources: less willingness to undertake social-responsible actions. K E Y W O R D S environmental munificence, environmental performance, environmental sustainability, financial performance, Portuguese companies, resource slack

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Take your time: Examining when green innovation affects financial performance in multinationals

Cited by 165 publications

References 35 publications

Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

The Interaction Effect between ESG and Green Innovation and Its Impact on Firm Value from the Perspective of Information Disclosure

The relationship between emissions reduction and financial performance: Are Portuguese companies in a sustainable development path?

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