Environmental responsibility and financial performance: Evidence from Mexico

Arturo García and Edgar M. Luna ()

Estudios de Economia, 2026, vol. 53, issue 1, 30-57

Abstract: This study examines the relationship between environmental responsibility (ER) and financial performance (FP) using data from Mexican publicly listed firms between 2018 and 2022. Employing a suite of econometric techniques—including static panel data models, the Generalized Method of Moments (GMM), and Propensity Score Matching (PSM)—we address potential endogeneity concerns to ensure robust estimation. ER is proxied by firm participation in the Carbon Disclosure Project (CDP), while FP is assessed through return on assets (ROA). The findings reveal that ER does not significantly enhance FP, suggesting that the costs associated with environmental initiatives may outweigh immediate financial benefits. However, this relationship is conditional on firm growth, with high-growth firms showing a greater capacity to absorb the compliance-related costs of ER, rather than deriving financial gains from these initiatives.

Keywords: Environmental responsibility; financial performance; carbon disclosure project; sales growth moderator (search for similar items in EconPapers)
JEL-codes: G30 M14 Q51 (search for similar items in EconPapers)
Date: 2026
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