원문정보
The Effect of Environmental Performance on Financial Performance and Firm Value
초록
영어
There has been a long-run debate on the effect of environmental performance on financial performance and firm value. Proponents of environmentally friendly management argue that investments and efforts of improving environmental performance induce firms to have physical assets, technological innovations, better human resources, and good reputation, etc. As a result, firms can have competitive advantages by increasing sales and profit as well as environment protection. However, opponents of environmentally friendly management advocate that firms cannot take full benefit of investments and effort in environmental matters in the real world. Previous empirical papers that investigate the relationship between environmental performance and financial performance (or firm value) failed to find a consistent results because of several problems including limited measurements of environmental and financial performances, endogeneity, and omitted variables. This study examines the effect of corporate environmental performance on its financial performance and firm value in Korea. Whereas prior empirical studies examined the effect mainly focused on accounting measures, current study uses financial measures of stock returns and operating performance, and firm value of Tobin’s Q with longer sample period and larger sample firms. Also, this paper deliberately uses fixed-effects panel regression models with 1-year lag to alleviate the endogeneity problem. We use the environmental performance score from the Korea Economic Justice Institute (KEJI) from 2009 to 2014 for gauging corporate environmental performance. We find that the firms with higher environmental performance score have insignificantly lower stock returns compared with the firms with lower score. However, we report that the firms with higher environmental performance score have higher operating performance and firm value compared to the firms with lower score, which is consistent with previous empirical studies. Moreover, the results of various panel regression models clearly show that the environmental performance factor have a positive impact on firm value. Our findings suggest that corporations are able to improve financial performance and firm value by investing in environmental initiatives although firms bear the whole costs of environmental activities.
목차
Ⅱ. 기존의 연구
Ⅲ. 연구방법
Ⅳ. 실증결과
Ⅴ. 결론
참고문헌
Abstract