Environmental Performance Of Companies Research Articles

Facility Compliance and Natural Disaster Events: Evidence From the U.S. Clean Air Act

With the increasing severity and frequency of natural disasters, we investigate the impact of such events on company environmental performance in the United States. This study analyzes the effect of natural disasters on facility compliance with the Clean Air Act throughout the sample period from 2013 to 2022. Our findings show that facilities located in disaster areas are associated with higher violation rates. By examining individual types of disasters separately, we find that the results are most pronounced for floods, fires, and severe storms. We suggest that regulators collectively evaluate the environmental policies and practices for companies in areas prone to natural disasters.

ESG SCORES, EARNINGS MANAGEMENT AND FINANCIAL PERFORMANCE: EVIDENCE FROM POLAND

The paper's main aim is to investigate the relationship between the ESG activities scores and profitability metrics of 33 public companies listed on the Warsaw Stock Exchange. By utilizing the Refinitiv methodology, we answer whether a company's environmental, social and governance performance perspectives positively affect the ROA, ROE and ROC ratios or whether there is a negative relationship. A secondary objective of the research is to investigate the relationship between profitability and the magnitude of aggregate-based earnings management in the tested sample. The moderating effect of earnings manipulation on the links between ESG performance and a company's profitability metrics is a research gap that has not been well-studied to date.This research demonstrates contradictory results: a positive relationship between the social dimension of ESG activities and the financial performance of companies was observed regarding ROE and ROC ratios. The negative impact of the environmental pillar rank on the ROA ratio was captured only in selected regression analyses. The governance pillar score did not statistically affect the tested profitability metrics. On the other hand, we gathered evidence that public companies with a high range of non-financial disclosures tend to alter earnings via accruals, and discretionary accruals statistically affect the ROA, ROE and ROC ratios. This finding contrasts previous research claiming that the earnings management phenomenon is a typical agency problem and that the policy of non-mandatory disclosures following the ESG assumptions could constrain the asymmetry of information and managerial information advantages.

The Impact of Free Trade Zones on Corporate Sustainability Performance: An Empirical Examination from the Dual Perspectives of Financial and Environmental Performance

As a “testing ground” for a new round of institutional innovation, China’s pilot free trade zones (FTZs) have created favorable development conditions for listed companies and significantly influenced their sustainability performance. Utilizing data from Shanghai and Shenzhen A-share listed companies from 2010 to 2022, this study uses the establishment of FTZs as a “quasi-natural experiment” and measures corporate sustainability performance by combining financial and environmental performance. A PSM-DID model is constructed to explore the impact of FTZ construction on corporate sustainability performance. The findings are as follows: (1) The establishment of FTZs significantly enhances both the financial and environmental performance of companies. (2) FTZs promote corporate sustainability performance by reducing transaction costs and improving corporate innovation levels. (3) The establishment of FTZs has a significantly positive impact on the sustainability performance of companies in highly competitive industries, non-labor-intensive industries, high-tech enterprises, and large-scale companies. This study reveals the impact and transmission mechanisms of FTZs on corporate sustainability performance, providing new empirical evidence for the future direction of corporate sustainable development in China.

Market Reaction to ESG Information Disclosure A Case Study of Midea Group

Abstract: As global environmental issues become increasingly severe, investors are paying more attention to corporate sustainability. They realize that focusing solely on financial performance is insufficient; a company's environmental, social, and governance (ESG) performance must also be considered. In China, with the goal of carbon neutrality highlighting the importance of ESG, concepts such as ESG investment, reporting, and rating are flourishing. Corporate ESG actions are becoming a new focal point for investors. This paper takes the ESG information disclosure of Midea Group as a case study, using an event study model to explore the stability of the companys stock price and the variation in its returns during the event window, thus analyzing the market's short-term reaction to ESG information. The study finds that the ESG reports issued by Midea Group have a positive impact on the stock market to some extent, significantly reducing stock price volatility and inducing a positive trend in abnormal returns.

Do images help? The impact of proenvironment photographs and graphs in environmental disclosures on investor perceptions and willingness to invest

AbstractThis study investigates the effects of proenvironment photographs and graphs in environmental disclosures on potential investors' perceptions and willingness to invest, considering the moderating role of a company's environmental performance. An online experiment was conducted with experienced investors, where participants evaluated a hypothetical company with varying environmental performance outcomes (negative or positive) presented in different formats (text only, text with photographs, or text with graphs). The results indicate that proenvironment images enhance perceived environmental responsibility for companies with negative environmental performance, whereas processing fluency is improved when the image type aligns with environmental performance. Moreover, perceived environmental responsibility mediates the impact of images on the willingness to invest in negative performance contexts. In contrast, processing fluency mediates this effect for graphs in positive performance contexts. These findings offer guidance for company managers in effectively presenting environmental data and highlight the potential risks for policy‐makers regarding the misuse of images.

Peran Green Accounting dalam Mewujudkan Prinsip Pembangunan Berkelanjutan

Environmental accounting is an important part of improving a company's environmental performance. Green accounting is a concept developed in Europe in 1970. This concept is used to identify, prioritize, and incorporate environmental costs in business decision making. By using green accounting, companies can reduce environmental problems and increase the effectiveness of environmental management. Despite this, the use of green accounting is still limited in developing countries. This research uses a qualitative descriptive data collection method which includes observation, interviews, documentation and triangulation. The findings show that Bakpia Maharani MSMEs face challenges related to waste management and financial reporting, because they do not allocate costs for prevention and detection, but instead focus on waste processing. This research aims to determine the implementation of green accounting in Bakpia Maharani MSMEs and identify related challenges.

ANALYZING THE EFFECT ISO 14001 ON FIRM PERFORMANCE: EMPIRICAL EVIDENCE BEFORE AND DURING THE COVID-19 PANDEMIC

Research on environmental performance and firm performance is a topic that has been widely studied but has not been carried out in many developing countries. In addition, the research period was carried out with a focus on the pre-pandemic and the COVID-19 pandemic. For this reason, the main objective of this paper is to analyze the impact of ISO 14001 on company performance from the perspectives of financial performance and environmental performance of companies in Indonesia before the pandemic and during the COVID-19 pandemic. We obtained data for a sample of 66 companies divided into six types of industrial sectors, with a research period from 2018 to 2021. We use panel data regression with the random effect model for this research. The results obtained show that the application of the ISO 14001 certificate has an effect on the firm’s environmental performance but has no effect on the firm’s financial performance.

The Relationship among Environmental, Social and Governance (ESG) Factors

As the global economy slows down, enterprise development enters a new stage. In addition to scale expansion, more emphasis is placed on external factors that focus on sustainable development, such as environmental, social and governance (ESG). ESG represents the concept of green economy, emphasizing that enterprises should not develop at the cost of the environment, but should take the initiative to fulfill social responsibilities and protect the rights and interests of stakeholders. In this paper, the comprehensive impact of ESG dimensions on corporate governance is deeply studied. Through the systematic review and analysis of several domestic and international literatures, this paper reveals the key role of strong governance structures in promoting the development and implementation of corporate environmental policies, as well as their central position in enhancing social responsibility and corporate social image. Research shows that good governance can not only improve a company's environmental performance, but also further enhance its financial performance and market competitiveness by improving social interaction and meeting stakeholder needs. This paper emphasizes that the optimization of governance structure is an important strategy for enterprises to achieve sustainable development and increase shareholder

The Effect of Green Human Resource Management and Green Innovation on Environmental Performance with Employee Green Behavior as a Mediating Variable: A Case Study of PT. PLN (Persero) Distribution Jakarta Raya

Global warming and other environmental issues have become a major focus on the global agenda. Indonesia, as a developing country with a significant industrial sector including the electricity industry, faces significant challenges related to carbon emissions and environmental impacts. This study aims to investigate the influence of Green Human Resource Management (Green HRM) and Green Innovation on company Environmental Performance, considering the role of Employee Green Behavior as a mediator at PT. PLN Distribution Jakarta Raya. The research adopts a quantitative descriptive approach with a cross-sectional design. The research sample consists of employees from PT. PLN Distribution Jakarta Raya selected through purposive sampling. Data were collected via questionnaires and analyzed using Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The analysis results indicate that Green Human Resource Management (H1) significantly and positively influences Employee Green Behavior and Environmental Performance at PT. PLN Distribution Jakarta Raya. Furthermore, Green Innovation also has a significant positive effect on employees' green behavior and Environmental Performance in the company. Employee Green Behavior has been shown to contribute significantly to Environmental Performance. However, the influence of Green Innovation on Environmental Performance is not significant. Moreover, Employee Green Behavior can act as a mediator linking the influence of Green Human Resource Management on Environmental Performance, but not in the case of Green Innovation. This study contributes to the fields of environmental management and human resources by highlighting the importance of integrative strategies to achieve better Environmental Performance in companies. The next step involves implementing these practices on a broader scale to support environmental sustainability in the future.

Impact of climate policy uncertainty on corporate green investment: examining the moderating role of financing constraints

Corporate green investment is the key driver for achieving low-carbon transition and sustainable marine economy. Existing literature has identified several influencing factors of corporate green investment, but there is still limited research on the relationship between climate policy uncertainty and corporate green investment. To fill this gap, this paper innovatively explores the nonlinear impact of climate policy uncertainty on corporate green investment, simultaneously focuses on the moderating role of corporate financing constraints and analyzes the coastal characteristic heterogeneity. Using the sample of listed companies in China from 2014-2020, we find that climate policy uncertainty has an inverted U-shaped impact on corporate green investment. From the perspective of heterogeneity, the inverted U-shaped effect is more significant in coastal areas. Moderating effect test indicates that corporate financing constraints strengthen the inverted U-shaped relationship and shift the turning point of curve to the left. Additionally, we further find that climate policy uncertainty has an inverted U-shaped impact on environmental performance of companies in coastal areas through green investment. Our research will provide some potential insights for China’s climate policy making and corporate green transformation, so as to contribute to sustainable marine development.

Pengaruh Penerapan Green Accounting terhadap Profitabilitas pada Perusahaan Sektor Industri Dasar dan Kimia yang Terdaftar di Bursa Efek Indonesia Periode 2020-2022

This research aims to analyze the effect of implementing green accounting on profitability in Basic Industry and Chemical Sector Companies listed on the Indonesia Stock Exchange for the 2020-2022 period. The population of this research is all Basic Industry and Chemical Sector Companies listed on the Indonesia Stock Exchange (BEI) totaling 70 companies with samples for three years from 2020-2022 totaling 22 companies with a period of 3 years so that we got 66 samples taken using the Purposive Technique Sampling. Data collection was carried out using documentation techniques. Data analysis was carried out with SPSS 23 using multiple linear regression tests, classical assumption tests, and hypothesis tests. Based on the results of partial testing (T test), the environmental cost variable has a significant effect on profitability, indicating that environmental costs can have a large effect on the company's ability to earn profits. Meanwhile, the environmental performance variable does not have a significant effect on profitability, which shows that whether a company's environmental performance is good or bad does not affect the company's profit even though the company has a good PROPER rating. Based on the results of simultaneous testing (F test) environmental costs and environmental performance together have a simultaneous effect on profitability

Enterprise Digital Transformation and Environmental Performance

The need to improve corporate environmental performance has emerged as a crucial and urgent study topic as the world's pollution and climate challenges get worse. This trend has taken on new meaning and importance in light of the expanding digital economy and digital transformation. Using financial and associated data from 2009 to 2021 as the sample, this research empirically studies the link between digital transformation, green innovation, and environmental performance with a focus on China's A-share listed enterprises. According to the study's findings, digital transformation may improve a company's environmental performance by strengthening its capacity for green innovation. Furthermore, heterogeneity analysis shows that the effect of digital transformation in enhancing environmental performance is more prominent in high-tech enterprises, non-heavy polluting companies, and organizations with a greater percentage of party members in senior management.

Carbon Emissions Disclosure are Reviewed of Firm Characteristics, Environmental Performance and Women on the Board of Directors

Purpose: This study aims to test and analyze the effect of company size, company age, environmental performance and women on the board of directors on the disclosure of carbon emissions in energy sector companies listed on the Indonesia Stock Exchange for the 2019-2021 period.Method: The data analysis method used, namely multiple linear regression analysis. The sampling technique in this study used purposive sampling technique and obtained a sample of 60 companies, so that the number of observations was 180 observations.Findings: The results of this study indicate that company size and environmental performance affect the disclosure of carbon emissions. While the age of the company and women in the board of directors have no effect on the disclosure of carbon emissions.Originality/Value: The results of this research will most likely help companies develop their understanding of environmental issues, especially in disclosing carbon emissions These findings can assist companies in developing carbon emission management strategies by considering factors such as company size and environmental performance. In addition, the results of this study may increase corporate awareness of the importance of corporate sustainability in business practices.

Supply chain digitalization and corporate ESG performance: Evidence from supply chain innovation and application pilot policy

The increasing environmental unpredictability has amplified the strategic significance of contemporary digital supply networks. Gaining a comprehensive understanding of the mechanisms and effects of supply chains enabled by digital technology is essential for implementing reforms that improve the economy's supply side. This study utilizes the Difference-in-Differences (DID) approach to investigate the influence of supply chain digitization on company Environmental, Social, and Governance (ESG) performance, using data from 2011 to 2020. This study demonstrates that supply chain digitalization can significantly enhance corporate ESG performance. The stimulating impacts are mainly attained through enhancing corporate governance, total factor productivity, and mitigating financial limitations.

Investigating the Relationship Between ESG Performance and Market Capitalization

This study investigates the potential connection between a company's environmental, social, and governance (ESG) performance and its market capitalization within the Indian context. Utilizing a scatter plot analysis of a large dataset encompassing 693 companies, the research revealed a weak negative trend between ESG combined score and market capitalization. However, the significant dispersion of data points across the plot suggested a more complex relationship. The analysis acknowledged the limitations of scatter plots, particularly their inability to account for the influence of other factors on market valuation. Factors such as company size, financial performance, industry affiliation, and economic conditions might be playing a significant role. Additionally, the observed data dispersion hinted at potential market mispricing, where companies with strong ESG practices might be undervalued by investors, and industry-specific effects, where the impact of ESG on market value could be stronger in certain sectors. To gain a deeper understanding of this intricate relationship, future research directions were identified. These included analysing correlations between individual ESG subcomponents and market capitalization to identify specific areas with a stronger association. Segmenting the data by industry could reveal industry-specific effects. Furthermore, employing regression analysis can offer a more robust understanding of the relative influence of various factors on market valuation. Finally, a long-term perspective might be necessary to capture potential delayed effects of ESG practices on market value. By addressing these limitations and exploring these avenues, future research can contribute to a more comprehensive understanding of the interplay between ESG performance and market valuation in the Indian market.

Research tools for studying modern trends in the implementation of ESG practices in Russian companies

Purpose: is to test the research tools for studying modern trends in the implementation of ESG practices and their effectiveness in Russian companies. Methods: this article examines the applicability of the research tools for analyzing the activities of organizations in the direction of the ESG agenda. We analyzed such tools as comparative analysis of fi nancing ESG projects, content analysis of report texts, regression analysis of the relationship between the ESG ratings and the fi nancial performance of the company. A comparative analysis of methods was carried out based on the results of appropriation of instruments. Results: the main result of the reporting analysis is the identifi cation of a trend towards reducing disclosure of information on the financing of ESG projects. We can identify main areas of investment in requests from external and internal stakeholders based on available financing information. The conclusion about the increase in mentions of social projects and initiatives in the fi eld of environmental protection based on a content analysis results. We also identifi ed the highest priority areas for each of the ESG components. The main priorities are: the social agenda – "employee welfare"; responsible attitude to the environment – "reduction of greenhouse gas emissions", "energy–efficient materials and technologies", "waste management" and "water consumption"; corporate governance – "observance of shareholders' rights". The hypothesis about the positive impact of ESG rating on company value confi rmed. There was a positive relationship between a company's environmental performance and value, as well as a negative relationship between value and social performance. Conclusions and Relevance: despite the challenges and sanctions restrictions, Russian companies continue to be active in the ESG field. For a more complete analysis of the ESG projects and their coverage in non-financial reporting, it is preferable to use a combination of research tools.

THE IMPACT OF COMPANY SIZE, PROFITABILITY, INDUSTRY TYPE, LEVERAGE, AND ENVIRONMENTAL PERFORMANCE ON CARBON EMISSION DISCLOSURE

The study aims to analyze the impact of company size, profitability, industry types, leverage, and environmental performance on carbon emission disclosure. The research population is all manufacturing company listed on the Indonesian Stock Exchange (IDX) during the period 2019-2022. Sampling method in this study uses purposive sampling techniques with specific criteria. The number of samples obtained amounted to 56 data. This type of research is quantitative research. This research data analysis method uses multiple regression analysis techniques. The data used in this study are secondary data derived from the annual reports and sustainability reports of the company contained on the website www.idx.co.id and the related company web. The research was processed using the SPSS 25 application. The result of this study show that profitability, industry types, and leverage have an impact on carbon emission disclosures, while company size and environmental performance have no impact on carbon emission disclosure

Environmental ethics and green practices in the manufacturing sector: The role of green innovation and environmental policy

AbstractNumerous studies have indicated that incorporating an environmental ethic (EE), green innovation (GI), and environmental policy (EnP) can enhance a company's sustainable performance, that is, environmental performance (EP) and economic performance (EcP) in the manufacturing industry. However, to encourage eco‐friendly production and processes, it is crucial to promote sustainable practices across different industries. Nevertheless, some researchers have overlooked the significance of these implementations. Integrating these practices into the manufacturing sector can be challenging. To address this issue, this study has developed an empirical model that assesses two pillars of sustainable performance in the Jordanian manufacturing industry. The study analyzes the direct correlation between a firm's EE, GI, and sustainable performance. It also examines whether GI plays a mediating role in the relationship between company EE and sustainable performance and if EnP moderates the relationship between GI and sustainable performance. The study collected data from 386 respondents belonging to various manufacturing industries in Jordan and analyzed it using SmartPLS. The research revealed that a manufacturing firm's EE is significantly boosted by GI, EP, and EcP. These findings suggest that companies with higher EE are more likely to innovate sustainably and perform better in terms of sustainability. In particular, the study found that GI plays a mediating role between a firm's EE and its sustainable performance. Furthermore, the impact of EnP on the relationship between GI and EP was mixed, showing a moderating effect on the former but not on EcP. The study provides valuable insights into the implementation of green practices in the manufacturing sector and discusses policy implications for manufacturers.

Role Environmental Performance on Effect Financial Performance to Carbon Emission Disclosure

Disclosure of carbon emissions has become a global issue amidst the increasing world climate. This issue becomes a tranding that can affect the company's performance supported by the company's environmental performance. This study aims to examine the role of environmental performance in the influence between the company's financial performance on the disclosure of carbon emissions. This research was conducted on Basic Industry and Chemical companies listed on the Indonesia Stock Exchange. The unit of analysis used in this study was 150 observation units. Data analysis uses multiple regression analysis. The results of the analysis show that first: financial performance consisting of liquidity, profitability, leverage, and sales growth has a direct effect on the disclosure of carbon emissions. However, the return on equity ratio has no effect on the disclosure of carbon emissions. Second, the results show that the presence of environmental performance can not maximally encourage the disclosure of carbon emissions. Where the company can improve environmental performance if the company has better financial performance. This is indicated by the value of the direct effect of environmental performance has no effect on the disclosure of carbon emissions. However, this research is limited to basic and chemical companies, so future research can expand to companies that have a direct impact on the environment.

The crowding-out effect of the environmental regulation on corporate sustainability

The analysis of the impact of China’s Environmental Protection Tax (EPT) Law on company environmental, social, and corporate governance (ESG) performance is crucial for a more comprehensive understanding of the EPT Law and to improve corporate practices. Using a difference-in-differences (DID) model with a research sample of 7,055 listed firms in China from 2012 to 2020, we found that the EPT Law significantly improved firms’ overall ESG performance. However, this improvement was mainly driven by significant increases in the environmental (E) score. In contrast, the social (S) score declined significantly after the implementation of the EPT Law, indicating a trade-off between environmental regulation and social responsibility. Further analysis also reveals that the increase in production costs, which led to a decrease in employment and wages, is responsible for the crowding-out of social responsibility. This study not only enhances our understanding of the impacts of environmental regulations on companies but also offers guidelines for policymakers to consider the negative externality of policies, which could serve as a “double-edged sword.”