Innovations in environmental performance: The importance of financial performance and management quality

International Journal of Business Innovation and Research

Volumn 2, Issue 4, 2008, Pages 331-353

  Erekson, O Homer ^a   Gorman, Raymond F ^b   Molloy, Linsey ^c  

^a UNIVERSITY OF MISSOURI KANSAS CITY   (United States)

^b MIAMI UNIVERSITY   (United States)

^c UNIVERSITY OF CHICAGO   (United States)

Author keywords

Environmental performance; Financial performance; Management quality

Indexed keywords

EID: 44949206577     PISSN: 17510252     EISSN: 17510260     Source Type: Journal    
DOI: 10.1504/IJBIR.2008.018583     Document Type: Article

References (25)

1. Al-Tuwaijri, S., Christensen, T. and Hughes, K.E., II (2004) 'The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach', Accounting Organizations and Society, Vol. 29, Nos. 5/6, pp.447-471.
2. Banz, R.W. (1981) 'The relationship between return and market value of common stocks', Journal of Financial Economics, Vol. 9, pp.3-18.
3. Boulding, W. and Staelin, R. (1995) 'Identifying generalisable effects of strategic actions in firm performance: The case of demand-side returns to research and development spending', Marketing Science, Vol. 14, No. 2. pp.222-236.
4. Capon, N., Farley, J.U. and Hoenig, S. (1990) 'Determinants of financial performance: A meta-analysis', Management Science, Vol. 36, No. 10, pp.1143-1159.
5. Chan, K.C. and Chen, N-F. (1991) 'Structural and return characteristics of small and large firms', The Journal of Finance, Vol. 46, No. 4. pp. 1467-1484.
6. Cohen, M.A., Fenn, S.A. and Konar, S. (1997) 'Environmental and financial performance: Are they related?' Vanderbilt University, Owen Graduate School of Management (working paper).
7. Derwall, J., Guenster, N., Bauer, R. and Koedijk. K. (2005) 'The eco-efificiency premium puzzle', Financial Analysts Journal, Vol. 61, No. 2, pp.51-63.
8. Dowell, G., Hart, S. and Yeung, B. (2000) 'Do corporate global environmental standard create or destroy market value?', Management Science, Vol. 46, No. 8, pp.1059-1074.
9. Fama, E.F. and French, K.R. (1992) 'The cross section of expected stock returns', The Journal of Finance, Vol. 47, No. 2, pp.427-465.
10. Filbeck, G and Gorman, R. (2004) 'The stock price reaction to environmentally-related company news', Journal of Business and Public Affairs, Vol. 35, No. 1, pp.25-31.
11. Hirsch, B.T. (1991) 'Union coverage and profitability among U.S. firms', Review of Economics and Statistics, Vol. 73, No. 1, pp.69-77.
12. Joshi, S., Khanna, M. and Sidique, S. (2005) 'Effect of environmental management systems on investor reactions to emission information', Best Paper Proceedings, Academy of Management Annual Conference.
13. Khanna, M. and Anton, W.R.Q. (2002) 'Corporate environmental management: regulatory and market-based incentives', Land Economics, Vol. 78, No. 4, pp.539-558.
14. King, A. and Lenox, M. (2001) 'Does it really pay to be green? An empirical study of firm environmental and financial performance', The Journal of Industrial Ecology, Vol 5, No 1, pp.105-116.
15. Klassen, R. and McLaughlin, C. (1996) 'The impact of environmental management on firm performance', Management Science, Vol. 42, pp. 1199-1214.
16. Koehler, D. and Cram, D. (2001) 'The Financial impact of corporate environmental performance: A review of the evidence of the link between environmental and financial performance', Paper presented at the CMER Research Workshop on Correlation of Environmental and Stock Performance Fontainebleau: INSEAD.
17. Konar, S. and Cohen, M.A. (1997) 'Information as regulation: The effect of community right to know laws on toxic emissions', Journal of Environmental Economics and Management, Vol. 32, pp. 109-124.
18. Konar, S. and Cohen, M.A. (2001) 'Does the market value environmental performance?', The Review of Economics and Statistics, Vol. 83, No. 2, pp.281-289.
19. Molloy, L., Erekson, O.H. and Gorman, R.F. (2002) 'Exploring the relationship between environmental and financial performance: A shareholder perspective'. Paper presented at U.S. EPA Workshop on Capital Markets and Environmental Performance, Laguna Beach, CA.
20. Palmer, K., Oates, W.E. and Portney, P.R. (1995) 'Tightening Environmental standards: The benefit-cost or the no-cost paradigm, Journal of Economic Perspectives, Vol. 9, No. 4, pp.119-132.
21. Porter, M.E. and van der Linde, C. (1995) 'Toward a new conception of the environment-competitiveness relationship', Journal of Economic Perspectives, Vol 9, No 4, pp 97-118.
22. Reed, D. (1998) Green Shareholder Value: Hype or Hit? World Resources Institute, Washington, DC.
23. Russo, M.V. and Fouts, P.A. (1997) 'A resource-based perspective on corporate environmental performance and profitability', Academy of Management Journal, Vol. 40, No. 3, pp.534-559.
24. Wagner, M. and Wehrmeyer, W. (2002) 'The relationship of environmental and economic performance at the firm level: A review of empirical studies in Europe and methodological comments', European Environment Vol. 12, pp. 149-159.
25. Ziegler, A., Schröder, M. and Rennings, K. (2007) 'The effect of environmental and social performance on the stock performance of European corporations', Environmental and Resource Economics, Vol. 37, pp.661-680.