Corporate Financial Performance and Corporate Environmental Performance: A Perfect Match?

Abstract

Corporate financial performance (CFP) is determined by many factors. One of those factors, which has been subject to much attention in research, is corporate environmental performance (CEP). Moreover, CEP is influenced by CFP as well.The relationship between CFP and CEP has been studied for almost 40 years leading to a vast number of empirical studies and reviews.This paper aims at providing an overview of studies on the focal relationship and summarizing their findings in a quantitative way, employing the methodology of a systematic review and a vote-counting approach. First, there is an assessment of the state of research including an examination of 30 review studies, showing that the findings are far from conclusive enough to be considered satisfactory. Second, 274 empirical studies are analyzed regarding characteristics such as measurement constructs and findings.

Keywords: corporate environmental performance, corporate financial performance, vote counting