scholarly journals Does corporate environmental responsibility affect investor future goal in the energy sector firms?

2021 ◽  
Vol 905 (1) ◽  
pp. 012140
Author(s):  
A Setyowati ◽  
N H Purnomowati ◽  
D N Sari ◽  
E S Ramadhan
Keyword(s):  
Financial Performance ◽  
Stakeholder Theory ◽  
Energy Sector ◽  
Environmental Responsibility ◽  
Corporate Environmental Responsibility ◽  
Environmental Initiatives ◽  
The Relationship ◽  
Sample Set

Abstract This study investigates the relationship between corporate environmental responsibility and firm’s financial performance by using a sample set of 2,241 firm-year observations representing 470 unique energy firms from 30 countries from 2013–2020. Supporting stakeholder theory, we find that firms with better environmental responsibility actions are associated with higher Tobins’q, suggesting that the investors react positively to the firm’s environmental initiatives. Overall, our findings suggest that firms in the energy sector should pay attention to corporate environmental responsibility practices to obtain a good response from the investors and achieve the firm’s long-term financial goals.

scholarly journals Going Green Inside and Out: Corporate Environmental Responsibility and Financial Performance under Regulatory Stringency

2020 ◽  
Vol 12 (9) ◽  
pp. 3850
Author(s):  
Jongjin Sohn ◽  
Jongseon Lee ◽  
Nami Kim
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Carbon Footprint ◽  
Multiple Time ◽  
Corporate Environmental Responsibility ◽  
Time Horizons ◽  
Internal Operations ◽  
The Relationship

While researchers have long examined the relationship between corporate environmental responsibility (CER) and financial performance, the evidence remains inconclusive. Moreover, whether sustainable supply chain management plays a role in enhancing the financial performance of focal firms has yet to be fully investigated. As firms’ investment in CER often pays off in the long-term, applying multiple time horizons, short- to long-term considerations, is needed to determine the effects of CER. This study examined the role of CER in improving financial performance based on multiple time horizons. In particular, the effects of CER on financial performance were explored in terms of internal operations and supply chains. The moderating effects of regulatory stringency on the relationship between CER and a firm’s short- or long-term financial performance were also investigated. Firms’ CER was studied using carbon data from Trucost. Carbon footprint can be an appropriate proxy for CER, as it provides information on supply partners’ environmental concerns. A unique dataset of the carbon footprint of 714 North American firms in 19 industry sectors in 2003–2010 was used. The results indicated that firms benefit from CER not only in their internal operations but also in their supply chains in both the short and long-terms. The moderating effects of regulatory stringency were significant for CER only in terms of the supply chain but not for internal operations. In industries with a high level of regulatory stringency, the positive effects of CER on short-term financial performance in the supply chain become weaker, but the same effects on long-term financial performance become stronger. By investigating the effects of two distinct carbon footprint aspects on financial performance at different time horizons, this study sheds light on the importance of CER in firms’ internal operations and supply chains.

HC and financial performance with two HRM strategies

2017 ◽  
Vol 66 (4) ◽  
pp. 459-478 ◽  
Author(s):  
Nopadol Rompho
Keyword(s):  
Human Capital ◽  
Regression Analysis ◽  
Financial Performance ◽  
Lead Time ◽  
Design Methodology ◽  
Strategy Choice ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.

Corporate environmental responsibility and financial performance: does bidirectional causality work? Empirical evidence from the manufacturing industry

2017 ◽  
Vol 13 (2) ◽  
pp. 221-234 ◽  
Author(s):  
Mario Testa ◽  
Antonio D’Amato
Keyword(s):  
Financial Performance ◽  
Manufacturing Industry ◽  
Environmental Responsibility ◽  
Economic Evaluations ◽  
Corporate Environmental Responsibility ◽  
Content Type ◽  
Environmental Commitment ◽  
Panel Data Regression ◽  
External Pressures ◽  
Italian Manufacturing Firms

Purpose Over the past two decades, scholarly attention has focused mainly on a direct and inverse relationship between corporate environmental responsibility (CER) and corporate financial performance (CFP). This study aims to explore the bidirectional causality hypothesis, as good environmental results can lead to good financial results, which makes it possible to invest more resources in projects that improve environmental performance. Design/methodology/approach The authors test the bidirectional causality between CER and CFP on a sample of listed Italian manufacturing firms over the 2005-2014 period. The authors use a fixed effect panel data regression and check the robustness of the results with alternative econometric techniques. Findings Although the findings do not support bidirectional hypothesis, they establish direction/causality from CFP to CER. As a result, environmental responsibility is a consequence of prior financial performance, which supports the slack resources hypothesis. Research limitations/implications Given that companies’ environmental commitment is dictated by economic evaluations or by assessing the availability of resources to invest, it seems that the spread of environmentally responsible behaviours might be supported by different external pressures. Originality/value The paper provides further insights on sustainability management literature by establishing a bidirectional relationship between firm performance and environmental responsibility.

scholarly journals The relationship between organisational culture and financial performance: Some South African evidence

1998 ◽  
Vol 29 (1) ◽  
pp. 30-40 ◽  
Author(s):  
W. Z. Van Der Post ◽  
T. J. De Coning ◽  
E. V.D.M. Smit
Keyword(s):  
Financial Performance ◽  
South African ◽  
Corporate Culture ◽  
Organisational Culture ◽  
Managerial Values ◽  
Beliefs And Values ◽  
The Individual ◽  
The Relationship ◽  
And Task

Although statistical evidence seems to be lacking. it is at present widely acknowledged that organisational culture has the potential of having a significant effect on organisational performance. An analysis of sustained superior financial performance of certain American organisations has attributed their success to the culture that each of them had developed. It has been proposed that these organisations are characterised by a strong set of core managerial values that define the ways in which they conduct business. how they treat employees, customers, suppliers and others. Culture is to the organisation what personality is to the individual. It is a hidden but unifying force that provides meaning and direction and has been defined as the prevailing background fabric of prescriptions and proscriptions for behaviour, the system of beliefs and values and the technology and task of the organisation together with the accepted approaches to these. Recent studies have indicated that corporate culture has an impact on a firm's long-term financial performance: that corporate culture will probably be an even more important factor in determining the success or failure of firms in the next decade; that corporate cultures that inhibit long-term financial performance are not rare and that they develop easily. even in firms that are staffed by reasonable and intelligent people; and that corporate cultures, although difficult to change, can be made more performance enhancing. The purpose of this study, therefore, was to establish the statistical relationship between organisational culture and financial performance.

Theory Foundation of Corporate Environmental Responsibility

2013 ◽  
Vol 726-731 ◽  
pp. 4203-4211
Author(s):  
Hong Wang
Keyword(s):  
Sustainable Development ◽  
Environmental Protection ◽  
Stakeholder Theory ◽  
Social Contract ◽  
Circular Economy ◽  
Social Contract Theory ◽  
Environmental Responsibility ◽  
Legitimacy Theory ◽  
Corporate Environmental Responsibility ◽  
Theory Foundation

The target of Corporate Environmental Responsibility is for environmental protection. This article analyzes the theory foundation of it. With the view of sustainable development, social contract theory, legitimacy theory, stakeholder theory, circular economy theory and externality theory, enterprises will make achievement in Corporate Environmental Responsibility practice.

The impact of corporate environmental responsibility strategy on brand sustainability

2018 ◽  
Vol 9 (3) ◽  
pp. 366-394 ◽  
Author(s):  
Chengzhi Long ◽  
Jing Lin
Keyword(s):  
Competitive Advantage ◽  
Empirical Evidence ◽  
Two Dimensions ◽  
Environmental Responsibility ◽  
Brand Value ◽  
Corporate Environmental Responsibility ◽  
Content Type ◽  
Chinese Context ◽  
The Impact ◽  
The Relationship

PurposeThough enormous research studies were conducted on corporate environmental responsibility (CER), few of them could empirically justify how CER helps to improve firm’s competitive advantage and firms are still hesitant to incorporate CER with their business strategy at present. The purpose of this paper is to theoretically and empirically explore how the CER strategy could help the firm to gain competitive advantage in Chinese context, particularly in terms of achieving brand sustainability (BS).Design/methodology/approachIn this study, 310 listed companies in China were chosen as research sample. First, the CER strategies were classified into developing eco-friendly products, adopting EMAS or other eco-management, enhancing the impact of CER through value chain and charitable CER. Second, BS is constructed as two dimensions, i.e. resource-acquisition and consumer impact. Accordingly, this paper analyzed the relationship between CER and BS with regression model analysis, taking account of several moderating and control variables.FindingsThe results indicate that CER strategies have positive effect on BS. Among all CER strategies, developing eco-friendly products and charitable CER undertakings are the most effective ones to promote BS performance. Also, the paper found that the length of time in adopting CER strategy moderates the effect of CER on BS. The empirical evidence proves that CER strategies could enhance the brand value in terms of BS and help the company to gain competitive advantage.Research limitations/implicationsFirst, most of our samples are of the state-owned enterprises, so our assumption might not be applicable to other types of business. Second, corporate social responsibility (CSR) communication is an important factor in the relation between CSR and corporate performance, but it is not taken into account in this study. Third, the difference in industries and ownership in this research is out of concern.Practical implicationsAs this paper has provided empirical evidence to reveal the effectiveness of different CER strategies, firms in China could be more motivated to undertake CER not only for the sake of environment but also for their brand value and competitive advantage. More importantly, this paper could be a valuable reference for the firms in China to choose suitable and effective CER strategies, as proved in this study, to gain competitive advantage in the market.Originality/valueAt first, while public environmental awareness has improved gradually, we introduce the BS concept to explain how the CER strategies affect CCA. This approach gives us another perspective to highlight the relationship between these two constructs. Second, we conducted our research from practical perspective to explore how to apply the CER undertakings as the company’s strategy. Third, we conducted our empirical research in Chinese context, which will enrich the theoretical CER and CSR literature.

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