Do Green Companies do better in Financial Performance and Environmental Disclosure?

• In Event: Topics in Sustainability and Social Responsibility

Abstract

The paper investigates the relationship between environmental performance, environmental disclosure，and financial performance using data from the Newsweek's Green Rankings. Previous studies document mixed results about the relations among the three constructs. A firm’s overall management strategy may affect the three constructs simultaneously; therefore the interrelationships among environmental performance, environmental disclosure, and financial performance were jointly examined. A simultaneous equations approach was used to test the hypothesis that there is no relationship between any two of the three constructs and found significant positive relationships among environmental performance, environmental disclosure, and financial performance.

Authors

• Wenxiang Lu, Bradley University

• Martin Edward Taylor, University of Texas-Arlington