scholarly journals Carbon Emissions Reduction and Corporate Financial Performance: The Influence of Country-Level Characteristics

Energies ◽  
2021 ◽  
Vol 14 (19) ◽  
pp. 6029
Author(s):  
Robin van Emous ◽  
Rytis Krušinskas ◽  
Wim Westerman
Keyword(s):  
Financial Performance ◽  
Carbon Emissions ◽  
Fixed Effects ◽  
Emissions Reduction ◽  
Corporate Financial Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Country Level ◽  
Carbon Emissions Reduction ◽  
Country Characteristics

Using a cross-country dataset covering 9265 observations on 1785 firms representing 53 countries over the period 2004–2019, this study investigates the relation between carbon emissions reduction and corporate financial performance (CFP). We perform OLS regressions with fixed effects. We found that carbon emissions reduction increases the return on assets, the return on equity, and the return on sales, whereas it has no effect on the Tobin’s Q and the current ratio. The positive relationship with the return on assets is stronger for firms with a higher responsibility score. We study country characteristics by modeling GDP growth, overall emissions within a country, and the presence of carbon emissions legislation. Our results indicate that the overall carbon emissions of a country and the presence of carbon emissions legislation are related to both corporate carbon emissions reduction and CFP. Moderating effects of the country’s overall emissions and the presence of carbon emissions legislation do not affect the relationship between carbon emissions reduction and CFP. Despite the further understanding gained, the issue of whether it “pays to be green” can still not be resolved well.

scholarly journals Link between Corporate Philanthropy and Corporate Financial Performance: Evidence from Pakistani Textile Sector

2016 ◽  
Vol 1 (1) ◽  
pp. 1-12
Author(s):  
Sehar Zulfiquar
Keyword(s):  
Financial Performance ◽  
Corporate Philanthropy ◽  
Economic Benefits ◽  
Corporate Financial Performance ◽  
Bottom Line ◽  
Return On Assets ◽  
Return On Equity ◽  
Immense Potential ◽  
The Relationship ◽  
Textile Sector

Literature highlights the immense potential of Corporate Philanthropy (CP) for generating social and economic benefits. The debate on economic benefits align corporate philanthropy with the business bottom line arguing that it can be a significant determinant of corporate financial performance. This research is intended to extent this debate by providing sector specific perspective through analyzing the sample of Pakistani public listed textile companies. Results of the study show that corporate philanthropy has a significantly positive relationship with Return on Assets (ROA) but with Return on Equity (ROE) the relationship is found to be insignificant. The previous year’s financial performance moderates the relationship between CP and ROA but the interaction effect for ROE is insignificant.

The Impact of Firm Characteristics on Corporate Financial Performance in Emerging Markets

2020 ◽  
Vol 11 (4) ◽  
pp. 70-89
Author(s):  
Salah A. Ali ◽  
Mohamed Yassin ◽  
Rania AbuRaya
Keyword(s):  
Financial Performance ◽  
Audit Committee ◽  
Corporate Financial Performance ◽  
Tobin’S Q ◽  
Firm Characteristics ◽  
Return On Assets ◽  
Tobin's Q ◽  
Return On Equity ◽  
The Impact

This study investigates the impact of firm characteristics on the financial performance of companies listed on the Egyptian stock market. Regression model was performed to regress six firm characteristics variables, namely firm size, foreign listing, age, leverage, liquidity, and assets tangibility. The study controlled for five more variables related to corporate governance including board size, board independence, CEO role duality, audit committee, and the quality of external auditor to avert their effect on financial performance. The study used both accounting measures such as return on assets (ROA) and return on equity (ROE) and market-based Tobin's Q Ratio for measuring financial performance. The findings generally indicate that firm characteristics have an impact on both accounting financial performance as measured by ROA or ROE and market-based financial performance as measured by Tobin's Q, with little difference in the level of such impact. These findings revealed that firm characteristics affect corporate financial performance as evaluated by the company or the market.

scholarly journals Family Ownership and Firm Performance: Romania Versus Germany

2017 ◽  
Vol 10 (2) ◽  
pp. 169-186 ◽  
Author(s):  
Milena J. Schank ◽  
Aurora Murgea ◽  
Cosmin Enache
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Fixed Effects ◽  
Capital Intensity ◽  
Time Frame ◽  
Ordinary Least Squares ◽  
Family Ownership ◽  
Return On Assets ◽  
Return On Equity ◽  
The Impact

Abstract A consistent body of research is dedicated to the relationship between the ownership structure of a firm and its financial performance. Despite that, the hitherto researches fail to reach a consensus regarding this issue since both negative and positive relationships have been found out. This paper examines the impact of ownership’s type (more precise the impact of the family ownership) on the firm’s financial performance. The analysis includes a comparison between family and non-family firm performance using a sample of 1,161 Romanian companies and 1,342 German companies for a time frame that range between 2008 to 2015. Based on different types of static panel data regressions: Pooled Ordinary Least Squares (OLS), Fixed Effects (FE), Random Effects (RE) and a corrective model (PCSE), the main findings show very different results for the two considered countries. Financial performance, expressed as return on assets (ROA) and return on equity (ROE) seems to be insensitive to family ownership in Romanian companies and statistically positively correlated with it for German ones. A potential explanation for these outputs consists in the different development circumstances in the two countries in the period that forego the Second War. At the same time, other variables considered do not show significant differences in outcome between the two countries: size, age, capital intensity and leverage negatively influence the financial performance of companies.

scholarly journals An Examination of Green Credit Promoting Carbon Dioxide Emissions Reduction: A Provincial Panel Analysis of China

2021 ◽  
Vol 13 (13) ◽  
pp. 7148
Author(s):  
Wenjie Zhang ◽  
Mingyong Hong ◽  
Juan Li ◽  
Fuhong Li
Keyword(s):  
Carbon Dioxide ◽  
Carbon Emissions ◽  
Carbon Dioxide Emissions ◽  
Industrial Structure ◽  
Emissions Reduction ◽  
Green Finance ◽  
Carbon Emissions Reduction ◽  
Negative Effect ◽  
Emissions Intensity ◽  
The Impact

The implementation of green finance is a powerful measure to promote global carbon emissions reduction that has been highly valued by academic circles in recent years. However, the role of green credit in carbon emissions reduction in China is still lacking testing. Using a set of panel data including 30 provinces and cities, this study focused on the impact of green credit on carbon dioxide emissions in China from 2006 to 2016. The empirical results indicated that green credit has a significantly negative effect on carbon dioxide emissions intensity. Furthermore, after the mechanism examination, we found that the promotion impacts of green credit on industrial structure upgrading and technological innovation are two effective channels to help reduce carbon dioxide emissions. Heterogeneity analysis found that there are regional differences in the effect of green credit. In the western and northeastern regions, the effect of green credit is invalid. Quantile regression results implied that the greater the carbon emissions intensity, the better the effect of green credit. Finally, a further discussion revealed there exists a nonlinear correlation between green credit and carbon dioxide emissions intensity. These findings suggest that the core measures to promote carbon emission reduction in China are to continue to expand the scale of green credit, increase the technology R&D investment of enterprises, and to vigorously develop the tertiary industry.

scholarly journals Impact of Non-Interest Income on Financial Performance of Joint Venture Banks in Nepal

2018 ◽  
Vol 3 (2) ◽  
pp. 107-124
Author(s):  
Ajay Kumar Shah ◽  
Niraj Agarwal ◽  
Ram Kumar Phuyal
Keyword(s):  
Financial Performance ◽  
Joint Venture ◽  
Return On Assets ◽  
Return On Equity ◽  
Letter Of Credit ◽  
Service Charge ◽  
Interest Income ◽  
Guarantee Income ◽  
Result Analysis ◽  
The Relationship

 The research was conducted to identify the non-interest income variables that will likely affect the financial performance of the joint venture banks of Nepal. The main objective of the study is to analyze the prominence of non-interest income and its effect on financial performance of joint venture banks in Nepal. This study will help the banks to identify other sources of income of the bank and try to look at its impact on the overall profitability and risk intention. To measure the financial performance, the indicator of profitability i.e. returns on assets and return on equity are taken into consideration for the study as a dependent variable and assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee as an independent variable. Both descriptive and inferential analyses were performed to capture the relationship. From the result analysis, it is observed that the non-interest income variables that would affect the financial performance of the joint venture banks. It is observed that not all variables have equal effect on the profitability as measure of financial performance, for joint ventures the factors like assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee have a significant relationship with the measure of financial performance that is return on assets and return on equity. Apart from the interest income, there are lot of non-interest variables which leads to profitability so the banks looking to increase its profitability with lesser risk need to take these variables into consideration. Results indicate that banks need to keep the non-interest income variables into consideration at times for improving the financial performance of the joint venture banks.

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