Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries
by
Sergio Manrique 1
and Carmen-Pilar Martí-Ballester 1,2,*
Sergio Manrique 1 and Carmen-Pilar Martí-Ballester 1,2,*
1
Business Department, Universitat Autònoma de Barcelona, Cerdanyola del Vallès 08193, Spain
2
Business School, University of Edinburgh, Edinburgh EH8 9YL, UK
*
Author to whom correspondence should be addressed.
Sustainability 2017, 9(11), 1957; https://doi.org/10.3390/su9111957
Received: 11 July 2017 / Revised: 16 October 2017 / Accepted: 16 October 2017 / Published: 27 October 2017
(This article belongs to the Section Economic and Business Aspects of Sustainability)
The relationship between corporate environmental performance and corporate financial performance has been extensively studied in developed countries, and has received less attention in developing countries. For this reason, the main objective of this paper is to examine the effect of corporate environmental performance on corporate financial performance during a global financial crisis, depending on the economic development level of the country where a firm is located. To this end, we obtain data for a sample of 2982 large firms from 2008 to 2015. We apply Petersen’s approach to these data, adjusting the standard errors for clustering by both firm and year. The results obtained show that the adoption of environmental practices significantly and positively affects the corporate financial performance in developed and developing countries. However, this effect is stronger for firms located in developing countries than those located in developed countries.
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Keywords:
corporate environmental performance; corporate financial performance; developing countries; developed countries; panel data
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
MDPI and ACS Style
Manrique, S.; Martí-Ballester, C.-P. Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries. Sustainability 2017, 9, 1957.
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