The relationship among environmental performance, R&amp;D expenditure and corporate performance: using simultaneous equations model

Wang, Mao-Chang; Chen, Zhe

doi:10.1007/s11135-021-01238-z

Cited by 13 publications

(18 citation statements)

References 25 publications

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“…Today, firms must disclose environmental sustainability information in their financial statement involving ecological and sustainability policies to exhibit the economic impact (Ferguson et al, 2002; Wang & Chen, 2021). A vast number of studies have been conducted to analyse the implication of environmental performance on financial performance (Duque-Grisales & Aguilera-Caracuel, 2021; Jyoti & Khanna, 2021; Kao et al, 2018; Kumar & Dua, 2022; Lee, 2021; Li et al, 2018; Wang & Chen, 2021). Nevertheless, the result of previous studies on the effect of environmental performance on financial performance may vary by country, industry and variables used (Wang & Chen, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

“…A vast number of studies have been conducted to analyse the implication of environmental performance on financial performance (Duque-Grisales & Aguilera-Caracuel, 2021; Jyoti & Khanna, 2021; Kao et al, 2018; Kumar & Dua, 2022; Lee, 2021; Li et al, 2018; Wang & Chen, 2021). Nevertheless, the result of previous studies on the effect of environmental performance on financial performance may vary by country, industry and variables used (Wang & Chen, 2021). Even the measurement of environmental performance is still underdeveloped, especially in the case of Asian and Indian contexts.…”

Section: Literature Reviewmentioning

confidence: 99%

“…A different measure of environmental performance has been used in the previous studies. Wang and Chen (2021) employed the reduction in carbon emission by the Taiwan-listed companies as an indicator of environmental performance. In contrast, Li and Lu (2016) used environmental expenditure by taking a sample from China’s eight most polluting industries from 2004 to 2010.…”

Section: Literature Reviewmentioning

confidence: 99%

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Relationship among Environmental Performance, R&D Expenditure and Financial Performance: Evidence from Indian Manufacturing Firms

Verma

Sharma

Priyanka

2022

Global Business Review

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The study is conducted to analyse the effect of environmental performance on the financial performance of 67 Indian manufacturing listed companies, categorized into most polluting and least polluting companies for the period of 7 years i.e. from 2014–15 to 2020–21. The present study has employed environmental performance as independent variable measured by various environmental performance measures. The content analysis has been conducted to estimate the environmental performance scores. The study covers both measures of financial performance, i.e. accounting-based measures (Return on Equity) and market-based performance measures (Market to Book value ratio) as dependent variables. The control variables used in the study are ownership structure (promoter ownership, institutional ownership and foreign ownership), firm size, leverage ratio, firm age and sale to asset ratio. By using the feasible generalized least square method, the study found a positive association of environmental performance with financial performance of both categories of companies. In contrast, an adverse effect of research and development expenditure on performance has been observed. The study witnessed the moderating impact of research and development expenditure on the relationship between environmental and financial performance. The study found the mixed effect of ownership structure on the financial performance of manufacturing companies.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Relationship among Environmental Performance, R&D Expenditure and Financial Performance: Evidence from Indian Manufacturing Firms

Verma

Sharma

Priyanka

2022

Global Business Review

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“…-relationship between Sustainable Development Goals and finance (Sachs et al, 2019;Zioło et al, 2021;Khan, 2019); -Sustainable Development Goals and their impact on development (Gupta & Vegelin, 2016) and enterprises (Mio et al, 2020;Garcia-Sanchez et al, 2020), investors (Khan, 2019;Liang & Rennenboog, 2020); -relationship between sustainable development and economy (Gambetta et al, 2019), including the circular economy (Geissdoerfer et al, 2017;Andersen, 2007) and green economy (Aldieri & Vinci, 2018;Levidow, 2018;Ali et al, 2021); -relationship between sustainable development and finance in the broad sense (Ryszawska, 2016;Wang & Chen, et al, 2021;Schoenmaker, 2018;Schmidt-Traub & Sachs, 2015); -Sustainable Development Goals and risk ESG (Mezzanotte, 2020;Sciarelli et al, 2020;Folqué et al, 2021;Lokuwaduge & Heenetigala, 2017). Sustainable development is based on mutual and intergenerational responsibility and solidarity and three pillars (environmental, social, and economic).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Artha et al (2021) confirmed that R&D spending significantly impacted Austria's CO 2 emissions in the period 1996-2006. They pointed out that the impact of research and development on CO 2 emissions can be either positive or negative (Wang & Chen, 2021). Therefore the role of the state is to support those programs that reduce CO 2 emissions (Petrović & Lobanov, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Fuzzy Model of Sustainable Development With the Inclusion of Financial Variables

Zioło

Spoz

Bąk

et al. 2022

Technological and Economic Development of Economy

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The aim of the article was to build a model based on fuzzy logic describing the level of sustainable development for the individual EU Member States in 2009–2019 and to conduct fuzzy simulations as a result of which scenarios for the prediction of sustainable development acknowledging financial variables (the share of environmental taxes, a deficit, a debt). The original research approach is expressed by including fuzzy models in the analysis of the level of sustainable development with the inclusion of financial variables. The Netherlands achieved the highest value (the highest level of sustainable development) (0.571). Slovenia (0.564) and Denmark (0.559) came second and third. The lowest average value (the lowest level of sustainable development) was recorded for Slovakia (0.423). After 10 years there are evident changes in the distribution of individual typological groups. In 2019, the countries belonging to the first and second typological groups were located primarily in the northern and central Europe. The scenario analysis showed that in the case of most countries, if the analyzed variables remained at the maximum or minimum level throughout the analyzed period, it would not significantly affect the assessment of their level of sustainable development, their ranking positions, and inclusion into typological groups.

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Dynamics of resource allocation–firm performance relationship: Panel autoregressive distributed lag approach

Kaur,

Singh

2024

Manage Decis Econ

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The present study aims to unravel the intricacies of the resource allocation–firm performance relationship by examining the impact of resource allocation to research and development (R&D), advertising, inventories, and wages and salaries on firm performance, considering both short‐term and long‐term dynamics This work is conducted using a sample of 240 listed Indian manufacturing firms over a time span of 18 years, that is, from 2006 to 2023. Based on the empirical findings from the dynamic panel autoregressive distributed lag (ARDL) model, it is revealed that, in the short term, allocating resources to areas such as R&D, advertising, inventories, and wages and salaries has a detrimental effect on sales. However, in the long term, these resource allocations show a positive impact on sales. Regarding stock market performance, both R&D and advertising exert a negative influence on Tobin's Q in the short term, but their impact becomes positive in the long term. In the case of inventories and wages and salaries, their effects evolve over time: Initially, in the short term, both have a positive impact on Tobin's Q, but this effect switches to negative and becomes significant in the long term. The key contribution of this study revolves around a model‐driven approach aimed at tackling the complex issue of resource allocation and its dynamic impact on performance outcomes.

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The relationship among environmental performance, R&D expenditure and corporate performance: using simultaneous equations model

Cited by 13 publications

References 25 publications

Relationship among Environmental Performance, R&D Expenditure and Financial Performance: Evidence from Indian Manufacturing Firms

Relationship among Environmental Performance, R&D Expenditure and Financial Performance: Evidence from Indian Manufacturing Firms

Fuzzy Model of Sustainable Development With the Inclusion of Financial Variables

Dynamics of resource allocation–firm performance relationship: Panel autoregressive distributed lag approach

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