Environmental performance, environmental management and company valuation

IF 3 Q2 MANAGEMENT

Journal of Global Responsibility Pub Date : 2021-09-02 DOI:10.1108/jgr-10-2020-0092

Royale Abrams, S. Han, M. T. Hossain

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引用次数: 6

Abstract

Purpose This paper aims to investigate the relationship between environmental performance and management and company valuation. With a specific focus on company valuation, this study shows how a firm’s environmental activities, including its environmental management practices, are perceived and valued by its stockholders. Design/methodology/approach Newsweek’s green ranking data between 2014 and 2016 were used to support this analysis. Environmental performances and environmental management practices of 345 Fortune 500 companies from various industries were included in the data set. Findings The analysis finds higher valuations for US companies that are more efficient in managing greenhouse gas emissions. In addition, it empirically shows that investors place a higher value on companies with the following environment-related management policies: initiatives that reward top management for achieving environmental goals and third-party auditing of environmental performance. Originality/value By incorporating corporate environmental management practices as an additional environmental performance criterion, this research fills a gap in the literature on the potential relationship between corporate environmental performance and company valuation.

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环境绩效、环境管理和公司估值

目的研究环境绩效与管理、公司价值评估之间的关系。通过对公司估值的特别关注，本研究显示了一个公司的环境活动，包括其环境管理实践，是如何被其股东感知和评估的。设计/方法/方法《新闻周刊》2014年至2016年的绿色排名数据用于支持这一分析。数据集中包括来自各行各业的345家财富500强公司的环境绩效和环境管理实践。分析发现，在管理温室气体排放方面效率更高的美国公司估值更高。此外，实证研究表明，投资者对具有以下环境相关管理政策的公司给予更高的价值:奖励最高管理层实现环境目标的举措，以及对环境绩效进行第三方审计。独创性/价值通过将企业环境管理实践作为额外的环境绩效标准，本研究填补了关于企业环境绩效与公司估值之间潜在关系的文献空白。

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来源期刊

Journal of Global Responsibility MANAGEMENT-

CiteScore

5.40

自引率

18.80%

发文量