David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Journal of Business Ethics 112 (2):353-366 (2013)
Review of extant research on the corporate environmental performance (CEP) and corporate financial performance (CFP) link generally demonstrates a positive relationship. However, some arguments and empirical results have demonstrated otherwise. As a result, researchers have called for a contingency approach to this research stream, which moves beyond the basic question “does it pay to be green?” and instead asks “when does it pay to be green?” In answering this call, we provide a meta-analytic review of CEP–CFP literature in which we identify potential moderators to the CEP–CFP relationship including environmental performance type (e.g., reactive vs. proactive performance), firm characteristics (e.g., large vs. small firms), and methodological issues (e.g., self-report measures). By analyzing these contingencies, this study attempts to provide a basis on which to draw conclusions regarding some inconsistencies and debates in the CEP–CFP research. Some of the results of the moderator analysis suggest that small firms benefit from environmental performance as much or more than large firms, US firms seem to benefit more than international counterparts, and environmental performance seems to have the strongest influence on market-measures of financial performance
|Keywords||Corporate environmental performance Corporate financial performance Environmental sustainability Meta-analysis|
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References found in this work BETA
J. Griffin & Mahon John (1997). The Corporate Social Performance and Corporate Financial Performance Debate: 25 Years ofIncomparable ReseaarchJ. Business and Society 1:73-75.
Rim Makni, Claude Francoeur & François Bellavance (2009). Causality Between Corporate Social Performance and Financial Performance: Evidence From Canadian Firms. [REVIEW] Journal of Business Ethics 89 (3):409 - 422.
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Citations of this work BETA
Li Cai & Chaohua He (2013). Corporate Environmental Responsibility and Equity Prices. Journal of Business Ethics 125 (4):1-19.
Heather R. Dixon-Fowler, Alan E. Ellstrand & Jonathan L. Johnson (forthcoming). The Role of Board Environmental Committees in Corporate Environmental Performance. Journal of Business Ethics.
Noor Muhammad, Frank Scrimgeour, Krishna Reddy & Sazali Abidin (2015). The Impact of Corporate Environmental Performance on Market Risk: The Australian Industry Case. Journal of Business Ethics 132 (2):347-362.
C. Trumpp, J. Endrikat, C. Zopf & E. Guenther (2013). Definition, Conceptualization, and Measurement of Corporate Environmental Performance: A Critical Examination of a Multidimensional Construct. [REVIEW] Journal of Business Ethics 126 (2):1-20.
Sara Hajmohammad & Stephan Vachon (2014). Safety Culture: A Catalyst for Sustainable Development. Journal of Business Ethics 123 (2):263-281.
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