Abstract
This research investigates the corporate environmental performance (CEP) literature toward its financial performance of the firm. CEP is defined as the exercise and practices of companies to choose sensible measures to save and develop environment-friendly green activities. The influence of CEP on the financial performance of the firm via technological capability was examined. Furthermore, public awareness was hypothesized to moderate the impact of CEP on technological capability indicating moderation mediation. When public awareness was high, the relationship between the CEP and technological capability should be stronger. Content analysis was used for data collection. The model was tested using a sample of 1491 observations from the manufacturing companies of Pakistan. The data were collected between the period 2008 and 2017 from the annual reports of the companies, State Bank of Pakistan, and Pakistan Stock exchange. A hierarchical regression analysis was used for data analysis. Using bootstrap analysis, we used model 8 in Stata to examine conditional direct and indirect effects. Results supported the indirect effect of CEP on financial performance through strengthening technological capability. Both direct and indirect effects were significant. Consistent with theoretical assumptions, the indirect effect becomes stronger with high public awareness and diminished with low public awareness. Both theoretical and practical contributions are discussed based on the outcomes.
Highlights
In the current period, global awareness concerned with the stability of financial growth and environmentally friendly green activities as environmental pollution issues appears continuously [1,2]
The moderation mediation role shows the indirect effect of corporate environmental performance (CEP) on financial performance through technological capability, which varies in strength by high and low levels of public awareness
We examined the differentiation in the conditional indirect effect of CEP on the financial performance using the technological capability by confidence intervals resulting from 5000 bootstrapping samples estimation of each pathway
Summary
Global awareness concerned with the stability of financial growth and environmentally friendly green activities as environmental pollution issues appears continuously [1,2]. As a result of increased green awareness, companies have become increasingly crucial in tackling environmental issues [3,4]. With the growing importance of green sustainability from investors, companies are making efforts to incorporate green concerns into their business environment and decision-making processes in an attempt to be environmentally friendly [5]. Green sustainability measures have begun by many new companies as an outcome of the corporate environmental performance (CEP) concept [6]. The balance of financial growth and environmentally friendly green activities is too urgently needed [7]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
