Corporate Environmental Performance: Determinants and Real Effects

Posted: 22 Apr 2013 Last revised: 25 Jan 2018

See all articles by Dianna Chang

Dianna Chang

SIM University (UniSIM)

Xin (Simba) Chang

Nanyang Business School, Nanyang Technological University

Kangkang Fu

Hong Kong Baptist University

Lewis Tam

Faculty of Business Administration, University of Macau

Date Written: August 20, 2016

Abstract

This study mainly addresses two questions. The first question is: what determine the “greenness” of a company? The second question is: what are the impacts of a company’s green policies on its investment decisions and financial performance? Using the green score published by Newsweek in 2009, 2010 and 2011, we find that firms are more likely to adopt good practices in their environmental policies if they have more top women executives and have more operations overseas. Furthermore, we document that more environmentally responsible companies invest less, but their investments contribute more to firm performance, suggesting that good environmental policies help companies reduce agency problems by avoiding over-investments.

Keywords: Newsweek, green score, corporate social responsibilities, environmental performance, financial impacts, investment policies

JEL Classification: G34, M14

Suggested Citation

Chang, Dianna and Chang, Xin and Fu, Kangkang and Tam, Lewis, Corporate Environmental Performance: Determinants and Real Effects (August 20, 2016). Available at SSRN: https://ssrn.com/abstract=2254781 or http://dx.doi.org/10.2139/ssrn.2254781

Dianna Chang

SIM University (UniSIM) ( email )

461 Clementi Road
Singapore, 599491
Singapore

Xin Chang

Nanyang Business School, Nanyang Technological University ( email )

S3-B1B-76 Nanyang Avenue
Singapore, 639798
Singapore

HOME PAGE: http://www.ntu.edu.sg/home/changxin

Kangkang Fu

Hong Kong Baptist University ( email )

34 Renfrew Road
Wing Lung Bank Building for Business
Hong Kong
Hong Kong

Lewis Tam (Contact Author)

Faculty of Business Administration, University of Macau ( email )

Room E22-4055, University of Macau
Avenida da Universidade
Taipa
Macau

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