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The relationship among environmental performance, R&D expenditure and corporate performance: using simultaneous equations model

Author

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  • Mao-Chang Wang

    (Chinese Culture University)

  • Zhe Chen

    (Chinese Culture University)

Abstract

This study examines the inter-correlation between corporate performance and research and development (R&D) expenditure among listed companies in Taiwan. Through a simultaneous equations model, this study investigates the effect of environmental performance on corporate performance and R&D expenditure. The results reveal that corporate performance correlates positively with environmental performance, but R&D expenditure correlates negatively with environmental performance. The corporate performance and R&D expenditure have negatively interdependent relationships. The results can compensate for the lack of studies on this topic, and provide a reference point for firms in emerging economies.

Suggested Citation

  • Mao-Chang Wang & Zhe Chen, 2022. "The relationship among environmental performance, R&D expenditure and corporate performance: using simultaneous equations model," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2675-2689, August.
    • Handle: RePEc:spr:qualqt:v:56:y:2022:i:4:d:10.1007_s11135-021-01238-z
    DOI: 10.1007/s11135-021-01238-z
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    References listed on IDEAS

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