The impact of the dimensions of environmental performance on firm performance in travel and tourism industry

Abstract

The development of tourism and the increase in the number of travellers at the level of certain areas of touristic interest brings socioeconomic benefits and also leads to the damaging of the quality of the environment. Transportation, as component of the tourism industry, has many side effects on the environment due to carbon dioxide emissions, pollution, etc. The work mainly emphasizes the way in which air, road, rail and water transportation influences the quality of the environment, contributing to global warming at the same time. Climate change, a consequence of global warming, is perhaps the biggest problem of the beginning of the millennium, representing one of the most prodigious forces that will affect the progress of humanity in the 21 st century and later. In this sense, our paper tries to draw attention to the adaptation measures meant to diminish the vulnerability of climate change at the level of tourism, in general and transportation, in particular.

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

“…This database, founded in 2003, collects and compiles publicly available information on firms' CSR strategies using 750 individual data points, combined into over 280 key performance indicators from over 4612 large firms distributed around the world and belonging to several industries. The ASSET4 database has been used in [15,18,101,102], among others. On the other hand, Worldscope database provides information on over 58,000 firms, with more than 37,000 of them active, which are included in this database on meeting at least one of these criteria: (1) their market capitalization must be greater than US$100 million; (2) they must be a member of one or more global or local indexes; (3) they must be quoted on many stock markets; and (4) they must have high visibility.…”

“…The independent variable of our model is corporate environmental performance (CEP), measured through a sector-neutral index that reflects the success degree of environmental practices implemented over the firms' supply chain (inputs, processes, outputs) and the outcomes obtained (e.g., in terms of emissions), as in [18]. Through ASSET4, Thomson Reuters provides data on over 5000 companies about environmental, social and governance (ESG) performance, with an equal-weighted rating of companies' financial and extra-financial health.…”

“…Therefore, we control for firm's capital intensity (Capital) measured as the capital expenditure to total sales revenue ratio [27]. Furthermore, empirical studies analyzing corporate financial performance and corporate environmental performance relationship have observed a positive association between sales growth and corporate financial performance [18,103]. Firms, which make economies of growth and innovation emerge, generate profitable growth [111] and economic value (by increasing their sales base).…”

“…Firstly, while previous studies use a great variety of one-dimensional corporate environmental performance measures mainly focused on toxic substance emissions [13][14][15][16][17] for analyzing the effect of corporate environmental performance on corporate financial performance (see Appendix A), we apply a multidimensional construct of corporate environmental performance which provides a broader perspective of it, as in [18], whose work is focused on the tourism industry. Secondly, previous studies have examined the effect of corporate environmental performance on corporate financial performance for firms located in a single country or region such as United States [19,20], Germany [21], Italy [22], Australia [14], Czech Republic [23], UK [24], Japan [25,26], Egypt [27], Indonesia [28], Brazil [29] and European region [30], while our study includes firms located in several countries around the world as in [16][17][18]. Thirdly, we introduce in our model the effect of the level of economic development of the country where the firm develops its business activities on the relationship between corporate environmental performance (in the broader environmental sense) and corporate financial performance.…”

Green Employee Empowerment and Green Physical Evidence: The Green Service Strategy to Enhance Firm Performance

“…Later research added that one of the significant outcomes of the firm's improved environmental performance was the positive financial performance (Sen, Roy and Pal 2015) and it is evident in the hotel setting (Tan, Muzafar, Tan and Choon 2017). Most of the previous studies measure environmental performance based on the pollution emission (Gholami, Sulaiman, Ramayah, and Molla 2013;Hart and Ahuja 1996) and waste or resources reduction (Tan et al 2017;Gholami et al 2013).…”