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Environmental management practices and financial performance: evidence from large listed Indian enterprises

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  • Surender Kumar
  • Pritika Dua

Abstract

Large enterprises have been at the forefront of environmental management with active participation in industrywide programs and adoption of a ‘beyond compliance’ approach. The present study revisits the premise of environmental–financial linkage in an Indian context with a focus on large listed enterprises. We develop a comprehensive dataset of 459 large listed Indian companies covering major manufacturing and service sectors of the economy over an eleven-year period from 2008–09 to 2018–19. Static and dynamic regression models are used to gauge the impact of environmental management practices on firm profitability (Return on Assets and Return on Equity) and market valuation (Tobin Q, Market to Book Value Ratio and Excess Valuation to sales ratio). Empirical results suggest a positive impact of environmental management on firm profitability and market valuation. These results are of interest to corporate and policy makers for recognizing the financial implications of corporate environmental management.

Suggested Citation

  • Surender Kumar & Pritika Dua, 2022. "Environmental management practices and financial performance: evidence from large listed Indian enterprises," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 65(1), pages 37-61, January.
    • Handle: RePEc:taf:jenpmg:v:65:y:2022:i:1:p:37-61
    DOI: 10.1080/09640568.2021.1877641
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    Cited by:

    1. Adomako, Samuel & Tran, Mai Dong, 2022. "Sustainable environmental strategy, firm competitiveness, and financial performance: Evidence from the mining industry," Resources Policy, Elsevier, vol. 75(C).
    2. Ruchita Verma & Dhanraj Sharma & Priyanka, 2022. "Relationship among Environmental Performance, R&D Expenditure and Financial Performance: Evidence from Indian Manufacturing Firms," Global Business Review, International Management Institute, vol. 23(6), pages 1316-1335, December.
    3. Samson Ojeme SAMUEL. & Ayotunde Oladipupo AKINYOSOYE, 2025. "Environmental Accounting Disclosure and Financial Performance of Listed Manufacturing Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 4995-5011, June.
    4. Manish Kumar & Vikram Sandhu & Japneet Dhillon & Hansdeep Kaur, 2026. "An Empirical Investigation of Sustainability in Finance: Exploring Determinants and Sustainability Performance in the Banking Sector," Metamorphosis: A Journal of Management Research, , vol. 25(1), pages 7-21, April.
    5. Zahid Hussain & Bihizi Marcel & Abdul Majeed & Raymondo Sandra Marcelline Tsimisaraka, 2024. "Effects of transport–carbon intensity, transportation, and economic complexity on environmental and health expenditures," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16523-16553, July.
    6. Ahmad Ali Jan & Fong-Woon Lai & Muhammad Umar Draz & Muhammad Tahir & Syed Emad Azhar Ali & Muhammad Zahid & Muhammad Kashif Shad, 2022. "Integrating sustainability practices into islamic corporate governance for sustainable firm performance: from the lens of agency and stakeholder theories," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 2989-3012, October.
    7. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    8. Pritika Dua & Surender Kumar, 2023. "Nature of corporate environmentalism in large-listed Indian firms: empirical evidence from Indian companies," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 13(4), pages 602-616, December.
    9. Dolores Gallardo‐Vázquez & Teresa C. Herrador‐Alcaide & Arian Matin, 2024. "Circular economy orientation from corporate social responsibility: A view based on structural equation modeling and a fuzzy‐set qualitative comparative analysis," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5581-5601, October.
    10. Gibran Saleheen Sarmad & Afshan Naseem & Asjad Shahzad & Mehran Ullah, 2024. "Do Quality Management Practices, Organizational Ambidexterity, and Green Innovation Influence Sustainable Performance? A Structural Equation Modeling approach," SAGE Open, , vol. 14(4), pages 21582440241, December.
    11. Aamir Azeem & Muhammad Akram Naseem & Rizwan Ali & Shahid Ali, 2025. "How Does Environmental Performance Contribute to Firm Financial Performance in a Multi-country Study? Mediating Role of Competitive Advantage and Moderating Role of Voluntary Environmental Initiatives," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 7688-7721, June.

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