Financial Resources for the Circular Economy: A Perspective from Businesses

Alfonso Aranda-Usón, Pilar Portillo-Tarragona, Luz María Marín-Vinuesa and Sabina Scarpellini
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Alfonso Aranda-Usón: Department of Accounting and Finance and CIRCE Institute, University of Zaragoza, Zaragoza 50005, Spain
Pilar Portillo-Tarragona: Department of Accounting and Finance University of Zaragoza, Zaragoza 50005, Spain
Luz María Marín-Vinuesa: Department of Economics and Business, La Rioja University, Logroño 26006, Spain
Sabina Scarpellini: Department of Accounting and Finance and CIRCE Institute, University of Zaragoza, Zaragoza 50005, Spain

Sustainability, 2019, vol. 11, issue 3, 1-23

Abstract: In recent years, a number of case studies of the circular economy in business have been analysed by academics. However, some areas of research are little explored at the micro level, such as the study of the characteristics of the financial resources applied to investments to introduce circular activities in businesses. Therefore, the main objective of this study is to define the resources applied to circular activities by firms. To describe the influence of financial resources on achieving a more advanced circular economy in business is also an objective of this paper. Using a sample of Spanish companies, we applied a partial least square structural equation model (PLS-SEM) to enhance the knowledge about financial resource management in the framework of the resource-based view. We find that availability of funds, quality of the firm’s own financial resources and public subsidies have a positive effect in stimulating the implementation of circular economy initiatives in businesses.

Keywords: Financial resources management; circular economy; sustainability; resource-based view; environmental management accounting; corporate finance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

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