Corporate environmental and economic performances of Japanese manufacturing firms: Empirical study for sustainable development
AbstractThis study examines the relationships between environmental performance and economic performance in Japanese manufacturing firms. The environmental performance indicators include CO2 emissions and the aggregate toxic risk associated with chemical emissions relative to sales. Return on assets (ROA) is used as an indicator of economic performance. We demonstrate that there is a significant, inverted U-shaped relationship between ROA and environmental performance calculated by aggregated toxic risk. We also find that the environmental performance increases ROA through both returns on sales and capital turnover improvement. However, we observe a significant, positive relationship between financial performance and environmental performance based on CO2 emissions. These findings may provide evidence for the consequences of environmental firm behavior and sustainable development.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39564.
Date of creation: 08 Mar 2012
Date of revision:
Corporate environmental management; Environmental efficiency; CO2 emissions; Toxic chemical substances; Japanese manufacturing firm; Sustainable development;
Find related papers by JEL classification:
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- L6 - Industrial Organization - - Industry Studies: Manufacturing
- P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
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