Environmental Risk, Corporate Strategy, Financing Strategy and Firm Profitability: Evidence from South East Asian Countries

Abstract

The aim of the paper is to analyze the simultaneous influence of environmental risk, corporate strategy and financing strategy on firm profitability. Data for the period of 2013-2019 was collected from COMPUSTAT and respective Stock exchanges. The sample consists of a total of 4837 publicly traded firms from South East Asian Countries. Using fixed effects model, the findings of the study revealed that independent constructs explain significant variation in firm profitability. These findings are helpful for managers in formulating better strategies particularly those that are concerned with addressing the volatility and uncertainty dimension of the environment as well as resource development for supporting their decisions related to strategy formulation.