Impact of Corporate Environmental Responsibility on Firm’s Financial Performance: Moderating Role of Organizational Slack and Industry Competition

Muhammad Amir, Naveed Iqbal, Sheeza Tahir
{"title":"Impact of Corporate Environmental Responsibility on Firm’s Financial Performance: Moderating Role of Organizational Slack and Industry Competition","authors":"Muhammad Amir, Naveed Iqbal, Sheeza Tahir","doi":"10.30537/sijmb.v8i2.603","DOIUrl":null,"url":null,"abstract":"Due to speedy trade and industry expansion in the emerging economies it is creating stern environmental corrosion. Effluence makers’ enterprises are mostly responsible for environmental deterioration. Therefore, it is the responsibility of those firms to take steps to control this corrosion in the environment. This research explains the effect of corporate environmental responsibility (CER) on corporate financial performance (CFP) with the moderating effect of organizational slack and industry competition. Data was collected from annual reports of 50 KSE 100 index companies from 2012-2019, containing total 450 observations. Dynamic penal model was used to test the study hypothesis by using Eviews, different pre and post estimations are applied to confirm the data validity.  Empirical results indicate that corporate environmental responsibility has significant positive effect on corporate financial performance, while the moderating effect of organizational slack is negative. Industry competition has significant positive moderating effect on the relationship, i.e., if there is high competition in industry then firms will invest more in environment to attract more consumers and to create good will in market. The study reveal that those firms will lead where competition is high and who will focus on their responsibility towards environment.","PeriodicalId":437099,"journal":{"name":"Sukkur IBA Journal of Management and Business","volume":"1 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2022-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Sukkur IBA Journal of Management and Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.30537/sijmb.v8i2.603","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 2

Abstract

Due to speedy trade and industry expansion in the emerging economies it is creating stern environmental corrosion. Effluence makers’ enterprises are mostly responsible for environmental deterioration. Therefore, it is the responsibility of those firms to take steps to control this corrosion in the environment. This research explains the effect of corporate environmental responsibility (CER) on corporate financial performance (CFP) with the moderating effect of organizational slack and industry competition. Data was collected from annual reports of 50 KSE 100 index companies from 2012-2019, containing total 450 observations. Dynamic penal model was used to test the study hypothesis by using Eviews, different pre and post estimations are applied to confirm the data validity.  Empirical results indicate that corporate environmental responsibility has significant positive effect on corporate financial performance, while the moderating effect of organizational slack is negative. Industry competition has significant positive moderating effect on the relationship, i.e., if there is high competition in industry then firms will invest more in environment to attract more consumers and to create good will in market. The study reveal that those firms will lead where competition is high and who will focus on their responsibility towards environment.
企业环境责任对企业财务绩效的影响:组织松弛和行业竞争的调节作用
由于新兴经济体的快速贸易和工业扩张,它正在造成严重的环境腐蚀。排污企业是造成环境恶化的主要原因。因此,这些公司有责任采取措施控制环境中的这种腐蚀。本研究解释了企业环境责任(CER)对企业财务绩效(CFP)的影响,以及组织松弛和行业竞争的调节作用。数据收集自50家KSE 100指数公司2012-2019年的年报,共包含450项观察结果。采用动态刑罚模型通过Eviews对研究假设进行检验,采用不同的前后估计来验证数据的效度。实证结果表明,企业环境责任对企业财务绩效具有显著的正向影响,而组织松弛对企业财务绩效的调节作用为负向。行业竞争对这一关系具有显著的正向调节作用,即如果行业竞争激烈,那么企业将在环境方面投入更多,以吸引更多的消费者,并在市场上创造良好的意愿。研究表明,那些企业将在竞争激烈的地方领先,谁将关注他们对环境的责任。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信