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The Influence of Carbon Management on the Financial Performance of European Companies

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  • Yenny Naranjo Tuesta

    (Management and Accounting School, National University of Colombia, Bogotá DC 111321, Cundinamarca, Colombia)

  • Cristina Crespo Soler

    (Accounting Department, Faculty of Economics, Universidad de Valencia, 46070 Valencia, Spain)

  • Vicente Ripoll Feliu

    (Accounting Department, Faculty of Economics, Universidad de Valencia, 46070 Valencia, Spain)

Abstract

This document shows the relationship between carbon management and the financial performance of the European Union’s best market capitalization companies. Different measures are used to understand it by adopting a quantitative approach. After analyzing the validity and reliability of the construct, the study empirically tests its hypotheses by performing a multiple regression analysis with a sample of 497 companies. The study identified how factors related to carbon management could affect the financial performance of European organizations. Furthermore, it recognizes that carbon management affects profitability, in particular, ROA (Return on Assets). The study highlights the differences between companies that are considered sensitive and those that are not, as the management of emission reductions and performance impacts are handled differently.

Suggested Citation

  • Yenny Naranjo Tuesta & Cristina Crespo Soler & Vicente Ripoll Feliu, 2020. "The Influence of Carbon Management on the Financial Performance of European Companies," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:4951-:d:372838
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