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Environmental and financial performance in the European manufacturing sector: an analysis of extreme tail dependency

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Environmental and financial performance in the European manufacturing sector: an analysis of extreme tail dependency. / Tzouvanas, Panagiotis; Kizys, Renatas; Chatziantoniou, Ioannis; Sagitova, Roza.

In: The British Accounting Review, 24.10.2019.

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@article{4f2439a5867a4e20a9cdacb603d48fa2,
title = "Environmental and financial performance in the European manufacturing sector: an analysis of extreme tail dependency",
abstract = "In this study, we investigate the impact of environmental performance on financial performance. We argue that environmental performance heterogeneously affects firms with different profitability level. Using data for 288 European manufacturing firms over the period 2005–2016, we investigate the said relationship under the financial slack argument and the contrasting paradigms of neoclassical and the instrumental stakeholder theory. Employing a quantile regression framework enriched with a set of instrumental variables to more effectively approximate environmental performance, we find (i) firms with superior environmental performance tend to be more profitable; (ii) the relationship between environmental and financial performance can be characterised as positive and heterogeneous across the conditional distribution; (iii) financial and environmental performance are endogenously related only when high profitability firms are examined.",
keywords = "Financial performance, Environmental performance, Quantile regressions, embargoover12",
author = "Panagiotis Tzouvanas and Renatas Kizys and Ioannis Chatziantoniou and Roza Sagitova",
year = "2019",
month = oct,
day = "24",
doi = "10.1016/j.bar.2019.100863",
language = "English",
journal = "The British Accounting Review",
issn = "0890-8389",
publisher = "Academic Press Inc.",

}

RIS

TY - JOUR

T1 - Environmental and financial performance in the European manufacturing sector: an analysis of extreme tail dependency

AU - Tzouvanas, Panagiotis

AU - Kizys, Renatas

AU - Chatziantoniou, Ioannis

AU - Sagitova, Roza

PY - 2019/10/24

Y1 - 2019/10/24

N2 - In this study, we investigate the impact of environmental performance on financial performance. We argue that environmental performance heterogeneously affects firms with different profitability level. Using data for 288 European manufacturing firms over the period 2005–2016, we investigate the said relationship under the financial slack argument and the contrasting paradigms of neoclassical and the instrumental stakeholder theory. Employing a quantile regression framework enriched with a set of instrumental variables to more effectively approximate environmental performance, we find (i) firms with superior environmental performance tend to be more profitable; (ii) the relationship between environmental and financial performance can be characterised as positive and heterogeneous across the conditional distribution; (iii) financial and environmental performance are endogenously related only when high profitability firms are examined.

AB - In this study, we investigate the impact of environmental performance on financial performance. We argue that environmental performance heterogeneously affects firms with different profitability level. Using data for 288 European manufacturing firms over the period 2005–2016, we investigate the said relationship under the financial slack argument and the contrasting paradigms of neoclassical and the instrumental stakeholder theory. Employing a quantile regression framework enriched with a set of instrumental variables to more effectively approximate environmental performance, we find (i) firms with superior environmental performance tend to be more profitable; (ii) the relationship between environmental and financial performance can be characterised as positive and heterogeneous across the conditional distribution; (iii) financial and environmental performance are endogenously related only when high profitability firms are examined.

KW - Financial performance

KW - Environmental performance

KW - Quantile regressions

KW - embargoover12

U2 - 10.1016/j.bar.2019.100863

DO - 10.1016/j.bar.2019.100863

M3 - Article

JO - The British Accounting Review

JF - The British Accounting Review

SN - 0890-8389

M1 - 100863

ER -

ID: 16181467