David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
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
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Citations of this work BETA
Li Cai & Chaohua He (2013). Corporate Environmental Responsibility and Equity Prices. Journal of Business Ethics:1-19.
Sara Hajmohammad & Stephan Vachon (forthcoming). Safety Culture: A Catalyst for Sustainable Development. Journal of Business Ethics.
Na Ni, Carolyn Egri, Carlos Lo & Carol Yeh-Yun Lin (2013). Patterns of Corporate Responsibility Practices for High Financial Performance: Evidence From Three Chinese Societies. [REVIEW] Journal of Business Ethics:1-15.
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:1-20.
Javier Martínez-del-Río & José Céspedes-Lorente (forthcoming). Competitiveness and Legitimation: The Logic of Companies Going Green in Geographical Clusters. Journal of Business Ethics.
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