Impacts of ISO 14001 adoption on firm performance: Evidence from China

Wenlong He, Chong Liu, Jiangyong Lu and Jing Cao

China Economic Review, 2015, vol. 32, issue C, 43-56

Abstract: This paper investigates the impacts of ISO 14001 adoption on the performance of firms using a sample of Chinese firms. The results show that adopting ISO 14001 has insignificant impacts on the financial performance of Chinese firms. A further investigation shows that the adoption of ISO 14001 increases sales and costs of firms in similar magnitudes, thus causes insignificant net effects on the financial performance. Despite negligible financial gains, the adoption of ISO 14001 provides implicit non-financial benefits, such as promoting export and relieving coercive environmental inspections from the government.

Keywords: ISO 14001; Chinese firms; Financial performance; Non-financial benefits (search for similar items in EconPapers)
JEL-codes: D22 L51 Q56 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:32:y:2015:i:c:p:43-56

DOI: 10.1016/j.chieco.2014.11.008

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