Earticle

초록

영어

This paper examines how environmental costs affect the corporate financial performance (CFP) of manufacturing firms around the world. We maintain that by effectively investing in corporate environment responsibility (CER), executives can decrease their firms’ environmental costs, thereby enhancing CFP. We label this argument as the ‘slack resources’ hypothesis. We find that countries in the Asia-Pacific region have the greatest variation between their return on assets (ROA) and environmental cost-adjusted ROA. This comes at the expense of rapid economic development in the emerging economies in the region. We also find that conventional industries such as the basic resources and the food and beverage industries have substantially high levels of total environmental costs, whereas the opposite holds true for the technology and telecommunication industries. Our results suggest that the reduction of environmental costs is related to higher firm performance. We also identify dynamic relations between these two variables. Lowering environmental costs tends to precede the enhancement of ROA by at least two years. Overall, our findings are supportive of the slack resources hypothesis.

목차

Abstract
 Introduction
 Literature Review and Hypotheses Development
  CSR and CFP
  CER and CFP
  Environmental Costs and CFP
  Hypotheses Formulation
 Data and Methodology
  Data Description
  Empirical design
 Empirical Results
  Summary Statistics
  Robustness Tests
 Discussion
  Limitations
  Significance
 Concluding Remarks
 References
 Table

키워드

저자

• Hoje Jo [ Santa Clara University ]
• Hakkon Kim [ Korea Advanced Institute of Science and Technology (KAIST) ]
• Bong-Soo Lee [ Florida State University ]
• Kwangwoo Park [ Korea Advanced Institute of Science and Technology (KAIST) ] Corresponding author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330