Eco-efficiency and financial performance in Latin American countries: An environmental intensity approach

Rodríguez-García, Martha del Pilar; Galindo-Manrique, Alicia Fernanda; Alejandro, Klender Aimer Cortez; Méndez-Sáenz, Alma Berenice

doi:10.1016/j.ribaf.2021.101547

Cited by 30 publications

(19 citation statements)

References 40 publications

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“…Likewise with emission intensity, the higher the emission intensity will affect the lower financial performance. These follow the research findings (Alviani & Sholihin, 2016;Perez-Calderon et al, 2011;Rodríguez-García et al, 2022c). Industry sensitivity, the control variable in this study, also negatively affects financial performance (ROA).…”

Section: Resultssupporting

confidence: 88%

Eco-Efficiency and Financial Performance: Empirical Evidence of Companies in Indonesia

Meutia,

Kartasar

2023

integr. j. of. bus. and. econ.

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This study aims to identify and analyze energy consumption and emissions produced by companies listed on the Indonesia Stock Exchange after the Circular Letter of The Financial Services Authority number 16 of 2021 regarding the obligation to prepare Sustainability Reports. In addition, this study tries to provide evidence regarding the relationship between eco-efficiency and company financial performance. The research population is all companies listed on the Indonesia Stock Exchange in 2021 and 2022. The research sample is a company that has prepared separate sustainability reports and has energy consumption and emission data for 134 companies. This study documents that energy efficiency and emissions significantly impact ROA in all sectors, including sensitive industries. This research supports the stakeholder theory in the context that companies responsible for balancing all stakeholders' interests can lead to long-term success and sustainability.

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Section: Resultssupporting

confidence: 88%

Eco-Efficiency and Financial Performance: Empirical Evidence of Companies in Indonesia

Meutia,

Kartasar

2023

integr. j. of. bus. and. econ.

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“…They criticized the traditional indicators as ROA, ROI, PAT, EPS etc., for their characteristics and the weak explanatory power in terms of value creation [3]. In contrast, developed countries have focused on environmental public policies to sustain companies' value and improve market efficiency and business models [4].…”

Section: Methodsmentioning

confidence: 99%

Financial Performance Analysis using Economic Value Added (EVA) Method at PT. Darma Henwa Tbk. Period 2017-2019

Ali¹,

Saputro²,

Nurani

et al. 2022

IJRVOCAS

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Measurement of financial performance is the achievement of the company's achievements in a period that describes the financial health condition of the company. This study aims to determine the calculation and measurement of the financial performance of PT financial statements. Darma Henwa Tbk in 2017-2019. Analysis in this study using Economic Value Added (EVA) method. The results of research on PT. Darma Henwa Tbk. shows that 2017 with a value of $199,460 shows a positive value. This is because the value of NOPAT in that year is greater than the capital charge value generated. Meanwhile, in 2018 the value of EVA increased by $2,893,767, which still generated positive value in that year. However, in 2019 EVA value decreased and obtained a negative value of -$764,780. The decrease is caused because the value of NOPAT in 2019 is smaller than the capital charge value.

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“…Since then, many scholars have carried out relevant empirical analyses and reached different conclusions. Some scholarly papers showed that there is a positive correlation between good environmental practice indicators and Tobin's Q (Dowell et [31][32][33][34][35][36][37][38][39]. On the other hand, some research has led to the opposite conclusions, showing that there is either no or a negative significant correlation between environmental practices and enterprises' economic performance (Iwata and Okada, 2011; Rassier and Earnhart, 2010; Hibiki and Managi, 2010; Liu and Zhang, 2016) [40][41][42][43].…”

Section: Literature Reviewmentioning

confidence: 99%

Promote or Crowd Out? The Impact of Environmental Information Disclosure Methods on Enterprise Value

et al. 2023

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Environmental information disclosure is a concrete practice for enterprises to actively implement the concept of green and sustainable development, which has great significance for enterprises to gain long-term competitive advantages. The academic world has widely discussed the relationship between environmental information disclosure and the economic performance of enterprises, but how the heterogeneity of environmental information disclosure methods affects the enterprise value has not been explored. This paper aims to answer two questions: (1) what is the impact of Ecomark and ESG on enterprise value? and (2) how does the interaction between Ecomark and ESG influence enterprise value? Utilizing the listed Japanese electrical equipment manufacturing enterprises dataset from 2008 to 2021, we employed the fixed panel linear regression model to confirm the relationship between Ecomark and ESG in enterprise value, and further used a moderating effect model to verify the existence of the crowd-out effect of ESG performance on Ecomark through enterprise value. In addition, a robustness check scheme was designed and performed to test the model settings, outliers and endogeneity issues. The main findings show that the obtaining of Ecomark certification and good ESG performance can help to improve enterprise value, but they may be altered regarding the heterogeneity of environmental information disclosure methods, further causing differences in enterprises’ time and economic cost burdens. Such differences increase the attractiveness of ESGs to investors, thereby crowding out the impact of Ecomark on enterprise value. Our conclusion reveals the mechanism of the heterogeneity of environmental information disclosure methods towards enterprise value, which offers a valuable reference for investors to evaluate enterprise value and paves the way for enterprise decision-makers and authorities to optimize their environmental information disclosure.

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Eco-efficiency and financial performance in Latin American countries: An environmental intensity approach

Cited by 30 publications

References 40 publications

Eco-Efficiency and Financial Performance: Empirical Evidence of Companies in Indonesia

Eco-Efficiency and Financial Performance: Empirical Evidence of Companies in Indonesia

Financial Performance Analysis using Economic Value Added (EVA) Method at PT. Darma Henwa Tbk. Period 2017-2019

Promote or Crowd Out? The Impact of Environmental Information Disclosure Methods on Enterprise Value

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