Eco-efficiency and financial performance in Latin American countries: An environmental intensity approach

Martha del Pilar Rodríguez-García, Alicia Fernanda Galindo-Manrique, Klender Aimer Cortez-Alejandro and Alma Berenice Méndez-Sáenz

Research in International Business and Finance, 2022, vol. 59, issue C

Abstract: This research contributes to the literature by empirically demonstrating the economic effect of listed companies’ eco-efficiency in Brazil, Chile, Colombia, and Mexico through an environmental intensity approach. We find evidence of a positive relationship between eco-efficiency and financial performance; that is, a lower CO2 emission-to-sales ratio increases Tobin’s q, with a stronger impact on those companies with the highest financial performance, mainly those in Brazil and Chile, with lower impacts in Colombia. On the other hand, Mexico shows no such relationship. These results can help investors understand the effect of eco-efficiency on Tobin's q not only at the median but also in the different quantiles. Moreover, our findings help fill the gap in the literature on eco-efficiency at the micro level in Latin American countries.

Keywords: CO2 emissions; Eco-efficiency; Emerging countries; Quantile regression; Tobin’s q (search for similar items in EconPapers)
JEL-codes: G30 M14 Q51 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:59:y:2022:i:c:s0275531921001689

DOI: 10.1016/j.ribaf.2021.101547

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