“…The traditional view of the corporation is that green expenditures will have a negative effect on firm performance (Friedman, 1970;Mathur and Mathur, 2000;Supreme Court of Michigan, 1919;Walley and Whitehead, 1994). However, recent greenoriented research has argued that this is not necessarily the case for large firms (Aragó n- Correa, 1998;Hills et al, 2004;Rinehart and Van Fleet, 2000;Sharma and Vredenburg, 1998). The study will test if the more recent green-oriented research also applies to small firms.…”