Corporate Environmental Performance and Financial Performance: Evidence from the Most Polluting Companies in India

Q2 Business, Management and Accounting

Business Perspectives and Research Pub Date : 2023-04-23 DOI:10.1177/22785337221148828

G. Ezhilarasi

{"title":"Corporate Environmental Performance and Financial Performance: Evidence from the Most Polluting Companies in India","authors":"G. Ezhilarasi","doi":"10.1177/22785337221148828","DOIUrl":null,"url":null,"abstract":"This article primarily investigates the association between corporate environmental performance (CEP) and financial performance (FP) of a firm and it also examines the effects of good, mixed, and poor environmental performers on FP. To achieve the objective, annual reports of 145 most polluting companies in India have been used from 2009–2010 to 2018–2019. On the basis of Global Reporting Initiative framework, the CEP scores have been measured in terms of quantitative (binary coding system) and qualitative (three-point scale) aspects using the content analysis technique. Subsequently, the scores are used to analyse the linkage between CEP disclosure and firms’ FP. Employing static and dynamic panel data analyses, the study observes quantitative as well as qualitative CEP performs significant part in expanding the firms’ market value and also notices innovation oriented investment boost the FP. On the contrary, the study finds out the expenditure on research and development and CEP together negatively influence firms’ FP. Further, it also reveals good performers make better CEP disclosure in their annual reports compared with mixed and poor performers on all aspects of environmental performance indicators of GRI guidelines and also observes a positive linkage between good performers and firm’s FP.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2023-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Perspectives and Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/22785337221148828","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"Business, Management and Accounting","Score":null,"Total":0}

引用次数: 2

Abstract

This article primarily investigates the association between corporate environmental performance (CEP) and financial performance (FP) of a firm and it also examines the effects of good, mixed, and poor environmental performers on FP. To achieve the objective, annual reports of 145 most polluting companies in India have been used from 2009–2010 to 2018–2019. On the basis of Global Reporting Initiative framework, the CEP scores have been measured in terms of quantitative (binary coding system) and qualitative (three-point scale) aspects using the content analysis technique. Subsequently, the scores are used to analyse the linkage between CEP disclosure and firms’ FP. Employing static and dynamic panel data analyses, the study observes quantitative as well as qualitative CEP performs significant part in expanding the firms’ market value and also notices innovation oriented investment boost the FP. On the contrary, the study finds out the expenditure on research and development and CEP together negatively influence firms’ FP. Further, it also reveals good performers make better CEP disclosure in their annual reports compared with mixed and poor performers on all aspects of environmental performance indicators of GRI guidelines and also observes a positive linkage between good performers and firm’s FP.

查看原文本刊更多论文

企业环境绩效和财务绩效：来自印度污染最严重公司的证据

本文主要研究了企业环境绩效(CEP)和财务绩效(FP)之间的关系，并研究了良好、混合和差的环境绩效对FP的影响。为了实现这一目标，从2009-2010年到2018-2019年，使用了印度145家污染最严重公司的年度报告。在全球报告倡议框架的基础上，使用内容分析技术，从定量(二进制编码系统)和定性(三分制)两个方面对CEP分数进行了测量。随后，这些分数被用于分析CEP披露与公司FP之间的联系。采用静态和动态面板数据分析，研究发现定量和定性CEP在扩大企业市场价值方面发挥着重要作用，并注意到创新导向投资对FP的促进作用。相反，研究发现研发支出和CEP共同对企业FP产生负向影响。此外，它还显示，在GRI指导方针的环境绩效指标的各个方面，与表现不佳和表现不佳的公司相比，表现良好的公司在年度报告中披露了更好的CEP信息，并且还观察到表现良好的公司与FP之间存在积极的联系。

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

Business Perspectives and Research Business, Management and Accounting-Business and International Management

CiteScore

5.00

自引率

0.00%

发文量

期刊介绍： Business Perspectives and Research (BPR) aims to publish conceptual, empirical and applied research. The empirical research published in BPR focuses on testing, extending and building management theory. The goal is to expand and enhance the understanding of business and management through empirical investigation and theoretical analysis. BPR is also a platform for insightful and theoretically strong conceptual and review papers which would contribute to the body of knowledge. BPR seeks to advance the understanding of for-profit and not-for-profit organizations through empirical and conceptual work. It also publishes critical review of newly released books under Book Review section. The aim is to popularize and encourage discussion on ideas expressed in newly released books connected to management and allied disciplines. BPR also periodically publishes management cases grounded in theory, and communications in the form of research notes or comments from researchers and practitioners on published papers for critiquing and/or extending thinking on the area under consideration. The overarching aim of Business Perspectives and Research is to encourage original/innovative thinking through a scientific approach.