Environmental and Financial Performance. Is there a win-win or a win-loss situation? Evidence from the Greek manufacturing

Kostantinos Kounetas (), Elias Alexopoulos and Dimitris Tzelepis

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the causal linkage between environmental and financial performance in Greek manufacturing firms. Environmental performance is measured according to accounting data following the Eco Management and Auditing Scheme guidelines and ISO certification. Return on assets and return on sales are used as indicators of financial performance. Empirical findings suggest that there seems to be a link between these dimensions irrespectively of the particular sector of activity. Contrary to similar studies a “virtuous circle” does not exist as the avoidance of environmental improving investments is related to a better financial performance. On the other hand firms with superior financial performance seem to achieve a better environmental performance. At the same time firm specific and market characteristics significantly affect this relationship. These findings provide evidence that governmental and corporate actions are necessary in order to lead to a more sustainable corporate performance in the long run

Keywords: environmental performance; financial performance; causality; GMM; Greece. (search for similar items in EconPapers)
JEL-codes: Q0 Q00 Q56 (search for similar items in EconPapers)
Date: 2016-03-01, Revised 2017-07-19
New Economics Papers: this item is included in nep-agr, nep-eff, nep-env, nep-hme and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:80906

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