The Impact of Environmental Regulation Compliance and Market Competitiveness Degree on Performance: The Case of the Portuguese Enterprise Ecosystem

IF 8.3 2区管理学 Q1 BUSINESS

Corporate Social Responsibility and Environmental Management Pub Date : 2025-01-27 DOI:10.1002/csr.3112

Sónia Silva

{"title":"The Impact of Environmental Regulation Compliance and Market Competitiveness Degree on Performance: The Case of the Portuguese Enterprise Ecosystem","authors":"Sónia Silva","doi":"10.1002/csr.3112","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>The EU Directive 2002/96/EC concerning the re-use, recycling, and other forms of recovery of waste of electrical and electronic equipment (WEEE) sets criteria for collecting, treating, and recovering WEEE. In Portugal, since 2006, firms operating in these industries must comply with the WEEE Directive. In this study, we examine the impact of compliance with this environmental regulation on corporate performance across different degrees of market competitiveness. We collected a sample of Portuguese-based firms from the electrical and electronic equipment industries from the Orbis Europe database between 2003 and 2022 and identified the ones that comply with the law—the treatment group. Our final sample consists of 219 firms, corresponding to 2718 matched pairs formed of treated and control observations. Our results show no differences in performance between firms that comply (the treatment group) and those that do not (the control group), except for firms operating in more competitive markets. In such cases, compliance negatively affects firms' performance. The profitability of treated firms assigned in the group of high market competitiveness is, on average, three percentage points lower than that of their counterparts. This evidence poses a challenge to the EU regulators, who should focus on enforcing EU Directive to create a common ground across member states to avoid free riders from emerging.</p>\n </div>","PeriodicalId":48334,"journal":{"name":"Corporate Social Responsibility and Environmental Management","volume":"32 3","pages":"3408-3422"},"PeriodicalIF":8.3000,"publicationDate":"2025-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Corporate Social Responsibility and Environmental Management","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/csr.3112","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}

引用次数: 0

Abstract

The EU Directive 2002/96/EC concerning the re-use, recycling, and other forms of recovery of waste of electrical and electronic equipment (WEEE) sets criteria for collecting, treating, and recovering WEEE. In Portugal, since 2006, firms operating in these industries must comply with the WEEE Directive. In this study, we examine the impact of compliance with this environmental regulation on corporate performance across different degrees of market competitiveness. We collected a sample of Portuguese-based firms from the electrical and electronic equipment industries from the Orbis Europe database between 2003 and 2022 and identified the ones that comply with the law—the treatment group. Our final sample consists of 219 firms, corresponding to 2718 matched pairs formed of treated and control observations. Our results show no differences in performance between firms that comply (the treatment group) and those that do not (the control group), except for firms operating in more competitive markets. In such cases, compliance negatively affects firms' performance. The profitability of treated firms assigned in the group of high market competitiveness is, on average, three percentage points lower than that of their counterparts. This evidence poses a challenge to the EU regulators, who should focus on enforcing EU Directive to create a common ground across member states to avoid free riders from emerging.

查看原文本刊更多论文

环境法规合规性和市场竞争力对绩效的影响：以葡萄牙企业生态系统为例

欧盟指令2002/96/EC关于电子电气设备（WEEE）废物的再利用、再循环和其他形式的回收，为收集、处理和回收电子电气设备设定了标准。在葡萄牙，自2006年以来，在这些行业运营的公司必须遵守WEEE指令。在本研究中，我们考察了遵守这一环境法规对不同市场竞争力程度的公司绩效的影响。我们从2003年至2022年的Orbis Europe数据库中收集了葡萄牙电气和电子设备行业的公司样本，并确定了遵守法律的公司-处理组。我们的最终样本包括219家公司，对应于由处理和控制观察形成的2718对匹配对。我们的研究结果显示，除了在竞争更激烈的市场中运营的公司外，遵守规定的公司（实验组）和不遵守规定的公司（对照组）之间的绩效没有差异。在这种情况下，合规对公司绩效产生负面影响。在高市场竞争力组中接受治疗的公司的盈利能力平均比其同行低3个百分点。这一证据对欧盟监管机构构成了挑战，他们应该专注于执行欧盟指令，在成员国之间建立一个共同点，以避免搭便车的出现。

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

Corporate Social Responsibility and Environmental Management Multiple-

CiteScore

17.20

自引率

16.30%

发文量

189

期刊介绍： Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas. The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.