Does environmental performance help firms to be more resilient against environmental controversies? International evidence

Sylvain Marsat, Guillaume Pijourlet and Muhammad Ullah

Finance Research Letters, 2022, vol. 44, issue C

Abstract: This study aims at understanding the role of prior environmental performance (EP) on a firm's resilience against an environmental controversy. In line with the natural resource-based view, high EP firms should develop environmental skills and reputation that foster resilience when facing such adverse events. Using an international dataset of 233 environmental controversies over the 2010-2016 period, we find clear evidence that prior high EP significantly helps firms recover more quickly from the shock. In a context of increasing pressure on environmental issues, this result uncovers new benefits of EP for firms confronted with an environmental controversy.

Keywords: Resilience; Environmental controversies; Environmental performance; Survival analysis (search for similar items in EconPapers)
JEL-codes: G12 M14 O16 Q51 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:44:y:2022:i:c:s1544612321001094

DOI: 10.1016/j.frl.2021.102028

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