The relationship between environmental management performance and financial performance of firms listed in the Alternative Investment Market (AIM) in the UK

Boakye, Danquah Jeff; Tingbani, Ishmael; Ahinful, Gabriel Sam; Nsor-Ambala, Randolph

doi:10.1016/j.jclepro.2020.124034

Cited by 53 publications

(58 citation statements)

References 46 publications

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“…The study used Small and Medium Enterprises as the sample. The results of the study revealed a negative relationship between environmental compliance and financial performance as measured by Tobin's Q. Boakye [46] underscored that the negative relationship established between environmental compliance and financial performance might be because SMEs do not fully invest in environmental systems such as ISO 4001 and other environmental certifications. This inversely impacts on their efficiency which translates into a negative market valuation by potential investors.…”

Section: Relationship Between Environmental Compliance and Financial Performancementioning

confidence: 92%

“…Serious environmental compliance is required to attain environmental sustainability. Environmental compliance at firm level is exhibited through the presence of internal environmental policies, possession of environmental excellence certificates, adoption of environmental certifications such as the International Standards Organization 4001 and the absence of environmental fines and penalties [46].…”

Section: Environmental Compliancementioning

confidence: 99%

“…Furthermore, a firm is likely to avoid penalties and fines if they comply with environmental policies and standards such as the International Organization for Standardization 4001 standards [56]. Environmental compliance enables firms to attain operational efficiency in terms of meeting quality requirements and product specifications which improve the firm's competitive advantage in the entire industry [46]. Recently, the supply chain has been greatly transformed where environmental compliance is the first consideration that suppliers check if they are to consider you as their supply chain partner or customer.…”

Section: Relationship Between Environmental Compliance and Financial Performancementioning

confidence: 99%

“…Environmental compliance is costly to a firm as investments in technology and environmental compliance certificates drain the cash flows of a firm in the short run [59]. Boakye [46] investigated the relationship between environmental sustainability of firms listed on the Alternative Investment Market (AIM) in UK. The study used Small and Medium Enterprises as the sample.…”

Section: Relationship Between Environmental Compliance and Financial Performancementioning

confidence: 99%

“…A case study is defined as the assessment of a problem from a targeted set of organizations that are perceived to possess the characteristics of the problems being investigated [62]. A case study design was used following other similar studies such as Boakye [46] for consistency. The longitudinal design was adopted where the researcher collected panel data from 2011-2018.…”

Section: Imentioning

confidence: 99%

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Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

Dzomonda

Fatoki

2020

IJERPH

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The importance of heeding the environmental sustainability commitment call cannot be underestimated. Laggards in terms of environmental sustainability commitment are likely to face fines and penalties as talks to tighten environmental legislation are now at an advanced stage globally. The current work assessed the link between environmental sustainability commitment and financial performance of firms listed on the Johannesburg Stock Exchange (JSE). The study was quantitative in nature with a case study research design. The longitudinal design was adopted where the researcher collected panel data from 2011–2018. The population of the study included all firms listed on the JSE Responsible Investment Index in South Africa. The sample constituted of 32 firms listed on the Financial Times Stock Exchange FTSE/JSE Responsible Investment Index in South Africa. The researchers employed the panel regression analysis model to analyze the data. Specifically, the Feasible Generalized Least Squares regression model was used in this study. Financial performance was treated as the dependent variable as measured by earnings per share and share price. The independent variables of the study included components of environmental sustainability such as carbon emission reduction and environmental compliance. Control variables such as firm size and liquidity were used in the study. The findings indicated that carbon emission reduction was positively and significantly related to earnings per share and share price. The findings further exhibited that environmental compliance was positively related to earnings per share and share price. It was concluded that firms can enhance their financial performance from environmental investment as all the hypotheses were supported. This study contributes practically towards shaping environmental policies and it also serves as motivation to listed companies that they can enhance both their profitability and market value from environmental investments.

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Section: Relationship Between Environmental Compliance and Financial Performancementioning

confidence: 92%

Section: Environmental Compliancementioning

confidence: 99%

Section: Relationship Between Environmental Compliance and Financial Performancementioning

confidence: 99%

Section: Relationship Between Environmental Compliance and Financial Performancementioning

confidence: 99%

Section: Imentioning

confidence: 99%

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Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

Dzomonda

Fatoki

2020

IJERPH

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Examining environmental proactivity in the Spanish wine industry: The moderating role of size

Carchano,

Carrasco,

González

2023

Agribusiness

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The value of proactive environmental strategies to achieve and maintain competitive advantages in the business sphere has been widely acknowledged in recent years. However, mixed results can still be found regarding the determinants and consequences of the implementation of such practices. This study investigates the determinants of environmental proactivity in Spanish wineries, focusing on the role of company size in linking internal motivations and stakeholder pressure with proactive environmental strategy using the natural resource‐based view. So far, no research of this type has been carried out for the Spanish wine sector. A structural equation model is proposed based on partial least squares applied to a sample of 251 wine companies to evaluate both the direct relationships and the moderating effect. The study identifies internal motivations, community pressure, and regulatory pressure as determinants of proactive environmental strategy. Company characteristics play an essential role in decision‐making when dealing with environmental issues proactively. Small companies tend to be more influenced by internal motivations, while larger companies are driven to undertake environmental actions based on external pressures. Additionally, we found that managers who take a proactive approach to environmental protection can achieve financial rewards. These findings provide important implications for both policymakers and managers by offering new theoretical and empirical insight into how proactive environmental strategy affects financial performance in the case of Spain's wine companies. [EconLit Citations: O31, Q55, C30].

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Influence of performance measures and sample characteristics on the relationship between corporate environmental management and firm performance: A meta‐analytic review

Kaur,

Dharni

2024

Bus Strat Dev

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Environmental and climate concerns have made corporate environmental management a raging topic for discussion among academicians and industrialists. The current study explores the association between corporate environmental management and firm performance; and examines the influence of different performance measurement methods and sample characteristics on this association. The meta‐analysis, homogeneity test, and publication bias test have been performed on 318 effect sizes from 117 studies. The results indicate a significant positive association between the overall corporate environmental management and firm performance association. The findings suggest a significant influence of the nature of the data, corporate environmental management measures, corporate performance measures, region, economic development, time phase, nature of data, and period of study in the given context. The findings will help managers to better understand and choose the appropriate corporate environmental management measures to attain internal and external efficiencies.

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The relationship between environmental management performance and financial performance of firms listed in the Alternative Investment Market (AIM) in the UK

Cited by 53 publications

References 46 publications

Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

Examining environmental proactivity in the Spanish wine industry: The moderating role of size

Influence of performance measures and sample characteristics on the relationship between corporate environmental management and firm performance: A meta‐analytic review

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