Research Output
Environmental Responsibility and Firm Performance: The Application of an Environmental, Social and Governance Model
  This paper investigates the way in which environmental responsibility impacts on corporate financial performance, measured by return on equity (ROE) and return on assets (ROA). Using a sample of Korean firms covering the period 2011–2012, and employing two different test methods, namely the OLS and 2SLS methods, we show that the relationships between environmental responsibility performance and firms’ ROE and ROA are positive and statistically significant. However, we show that research and development (R&D) intensity (expenditure) does not affect either environmental responsibility or corporate financial performance. The results of this analysis encourage further empirical analysis of the industries, as well as the use of more than one estimation method to determine environmental responsibility and corporate financial performance within firms.

  • Type:

    Article

  • Date:

    19 May 2014

  • Publication Status:

    Published

  • Publisher

    Wiley

  • DOI:

    10.1002/bse.1855

  • ISSN:

    0964-4733

  • Funders:

    Historic Funder (pre-Worktribe)

Citation

Lee, K., Cin, B. C., & Lee, E. Y. (2016). Environmental Responsibility and Firm Performance: The Application of an Environmental, Social and Governance Model. Business Strategy and the Environment, 25(1), 40-53. https://doi.org/10.1002/bse.1855

Authors

Keywords

environmental responsibility, ESG, ROE, ROA, financial performance, sustainable development, Korean firms

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