The Effect of Corporate Environmental Performance on Corporate Financial Performance

2018 ◽  
Vol 10 (1) ◽  
pp. 425-444 ◽  
Author(s):  
Dietrich Earnhart
Keyword(s):  
Financial Performance ◽  
Empirical Evidence ◽  
Environmental Performance ◽  
Empirical Literature ◽  
Future Research ◽  
Corporate Environmental Performance ◽  
Financial Success ◽  
Meta Analyses ◽  
Mature Market ◽  
Negative Link

This review explores the effect of corporate environmental performance on financial performance. In particular, it reviews the empirical evidence on this effect. Conceptually, stronger environmental performance may lead to worse or better financial performance. The empirical literature generally finds a positive link from good environmental performance to financial success. However, many studies reveal a negative link. Given this mixed evidence, literature reviews and meta-analyses help to discern the conditions under which better environmental performance prompts financial success or disappointment. Similarly, this review organizes the empirical evidence by the specific measures of environmental performance and financial performance to discern which links are positive or negative. Lastly, the review identifies shortcomings in the empirical literature and offers suggestions for future research. For example, analyses should more fully explore the factors shaping the links from environmental to financial performance, such as firm size and economy type (e.g., mature market).

Corporate environmental performance–financial performance relationship in India using eco-efficiency metrics

2020 ◽  
Vol 31 (6) ◽  
pp. 1497-1514
Author(s):  
S. Sudha
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Environmental Performance ◽  
Emerging Market ◽  
Time Lag ◽  
Positive Association ◽  
Empirical Literature ◽  
Corporate Environmental Performance ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this study is to attempt to empirically examine the impact of disaggregate, eco-efficiency-based measures of corporate environmental performance (CEP) on corporate financial performance (CFP) of Indian companies. Further, recent theories contending a bidirectional causality between them is also explored.Design/methodology/approachSecondary data of 224 Indian S&P 500 companies from 2002 to 2011 are used to run panel data regression models for examining the impact of CEP measures on accounting-based CFP measures.FindingsThe empirical results are statistically significant and provide evidence for a positive association of eco-efficiency-based CEP metrics on CFP metrics, thereby supporting Porter's win–win hypothesis. Further, the results evidence a positive bi-directional causality between CEP and CFP for one period time lag signalling possibility of mutual reinforcement in CEP–CFP relationship.Research limitations/implicationsThe study has used data for the period 2002–2011 and eco-efficiency metrics – energy, water and material efficiencies due to availability.Practical implicationsThe results have implications to both corporate managers as well as policymakers across all industries for emphasizing on eco-efficiency-based (proactive) environmental sustainability initiatives to enhance both financial and environmental bottom lines.Originality/valueThe study contributes to scarce empirical literature analysing the impact of CEP on financial performance. To the best of authors's knowledge, event studies, portfolio studies and perceptual data-based empirical studies exist in India. This study is unique in that it examines long run effect of eco-efficiency-based CEP metrics which is pertinent in a rapidly growing emerging market – India, where, eco-efficiency is considered quintessential for sustainable development.

scholarly journals The effectiveness of probation supervision towards reducing reoffending: A Rapid Evidence Assessment

2018 ◽  
Vol 65 (4) ◽  
pp. 407-428 ◽  
Author(s):  
Andrew Smith ◽  
Kim Heyes ◽  
Chris Fox ◽  
Jordan Harrison ◽  
Zsolt Kiss ◽  
...  
Keyword(s):  
Evidence Base ◽  
Empirical Literature ◽  
Future Research ◽  
What Works ◽  
Research Designs ◽  
The Usa ◽  
Probation Supervision ◽  
Methodological Considerations ◽  
Meta Analyses

In response to the lack of universal agreement about ‘What Works’ in probation supervision (Trotter, 2013) we undertook a Rapid Evidence Assessment of the empirical literature. Our analysis of research into the effect of probation supervision reducing reoffending included 13 studies, all of which employed robust research designs, originating in the USA, UK, Canada and Australia, published between 2006 and 2016. We describe the papers included in our review, and the meta-analyses of their findings. Overall, we found that the likelihood of reoffending was shown to be lower for offenders who had been exposed to some type of supervision. This finding should be interpreted cautiously however, given the heterogeneity of the studies. We suggest future research and methodological considerations to develop the evidence base concerning the effectiveness of probation supervision.

scholarly journals Corporate Social Responsibility and Corporate Financial Performance: An Empirical Literature Review

2021 ◽  
pp. 1-32
Author(s):  
Sonia Boukattaya ◽  
Zyed Achour ◽  
Zeineb Hlioui
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Financial Performance ◽  
Social Impact ◽  
Empirical Literature ◽  
Future Research ◽  
Corporate Financial Performance ◽  
Content Analysis Method ◽  
Corporate Social

This study aims to present a literature review of recent studies on the relationship between environmental, social and governance (ESG) performance, corporate social responsibility (CSR) and corporate financial performance (CFP) and to provide a path for future researches. Using content analysis method, a total of 88 papers published in renowned journals, over the period 2015-2021, were selected in the review. Several findings have been made: first, the majority of researches have focused on the CSR’s “social impact” hypothesis on CFP; the reverse relationship seems to have been overlooked. Second, the contested results are likely to be attributable both to differences in research contexts and CSR’ laws but also to biases relating to the operationalization of CSR concept and CFP proxies retained. Finally, several arguments are advanced arguing for an indirect link between CSR and CFP. Future research should, therefore, pay attention to the different contingent variables that are likely to affect the studied relationship.

scholarly journals Impact of Environmental Performance on Financial Performance: Empirical Evidence from Indian Banking Sector

2021 ◽  
Vol 12 (1) ◽  
pp. 13-24
Author(s):  
Parul Munjal ◽  
P. Malarvizhi
Keyword(s):  
Financial Performance ◽  
Empirical Evidence ◽  
Significant Relationship ◽  
Environmental Performance ◽  
Banking Sector ◽  
Secondary Data ◽  
Capital Intensity ◽  
Environmental Disclosure ◽  
Policy Makers ◽  
Environmental Practices

There has been long-standing debate over whether or not firms gain economic competiveness from reducing their impact on the environment. Although ample literature is available on association between environmental performance and financial performance across various sectors, little empirical evidence is available in context of Indian banking sector. This research aims to analyze whether there is any significant relationship between environmental performance and financial performance of banks operating in India for a period 2013-14 to 2017-18. Secondary data has been collected for a sample of 83 banks operating in India. Content analysis was applied to extract information about environmental performance disclosed by sample banks followedby construction of environmental disclosure score index. Hierarchical multiple regression was applied to analyze relationship between environmental performance and financial performance after controlling for effects of size, financial leverage and capital intensity. Results exhibit no significant relationship between environmental performance and financial performance of banks operating in India. Findings of this research are expected to provide insight to users and readers of financial statements to have better understanding about the environmental practices carried out by banks. It would also contribute significantly towards decision making for policy makers in Indian banking sector to establish mandatory environmental legislations for reporting on environmental practices in order to improve non financial disclosure and financial performance in Indian banking sector.

Dynamics for the Acceptance of Enterprise Resource Planning (ERP) Systems and Financial Performance

2016 ◽  
Vol 11 (01) ◽  
Author(s):  
Pallavi Jain ◽  
Jai Kishore Tyagi
Keyword(s):  
Financial Performance ◽  
Enterprise Resource Planning ◽  
Relevant Literature ◽  
Positive Association ◽  
Resource Planning ◽  
Research Paper ◽  
Empirical Literature ◽  
Future Research ◽  
Erp Systems ◽  
Insight Into

The purpose of this research paper to present thesynthesized theoretical and empirical literature to help in thedevelopment of propositions and suggestions of a researchagenda on the acceptance of ERP systems and their link with financial performance. The paper develops the technologyacceptance model (TAM) to synthesize relevant literature andto develop proposition for future research agendas. This researchprovides a positive association between the acceptance of ERPsystems and financial performance. Also, the use of TAMtheory provides further insight into identifying the acceptancefactors of ERP.

scholarly journals IMPACT OF MICROFINANCE LOANS ON THE PERFORMANCE OF SMES: THE CASE OF LEBANON

2020 ◽  
Vol 21 (2) ◽  
pp. 769-779
Author(s):  
Fida Moussa
Keyword(s):  
Empirical Study ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Low Income ◽  
Secondary Data ◽  
Future Research ◽  
The North ◽  
Dependent Variables ◽  
The Relationship ◽  
The Needy

Microfinance is the arrangement of budgetary administrations to low-income individuals and to SMEs. An empirical study was undertaken to identify the relationship between micro credits from MFIs and the SMEs’ financial performance. Secondary data were collected from 17 SMEs in North Lebanon. Another secondary data were collected from four MFIs in Lebanon concerning the characteristics of their beneficiaries. Data were analyzed using SPSS Ver. 23. The results showed notable relationships between amount of micro loan and the dependent variables, the number of women recipients of credits remains little in Lebanon, the categories of businesses mostly profiting from the MFIs in Lebanon are commerce, service, and trade sectors and the beneficiaries are primarily situated at Mount Lebanon, South, Bekaa, and at the north. The research contributes to the enduring deliberation on the effect of micro loans on the SMEs’ financial performance. It is vital to see how MFIs could add to the monetary advancement of the country, by improving the welfare levels of all the needy individuals. This study can be utilized to provide useful empirical evidence for future research and to raise awareness on this significant matter for SMEs’ managers, MFIs’ managers and clients, and for the analysts.

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