Environmental management practices and financial performance using data envelopment analysis in Japan: the mediating role of environmental performance
Environmental management practices and financial performance using data envelopment analysis in Japan: the mediating role of environmental performance
This study investigates the relationship between environmental management practices (EMPs) and financial performance (FP) and consequently ascertains whether environmental performance (EP) can mediate the EMPs–FP nexus. Distinctly using data envelopment analysis and generalised method of moments techniques to analyse a comprehensive dataset of Nikkei 225 listed firms from 2007 to 2018 (1920 firm-year observations), our findings first suggest that EMPs have a positive effect on FP. Second, the desired EP can be achieved through the adoption of comprehensive EMPs. Third, improved EP has a substantial impact on shaping the EMPs' effect on FP. These findings are consistent with the predictions of resource-based view and institutional theories. The results are robust to controlling for different types of alternative measures and endogeneities. The findings have important implications for academics, investors, managers, policymakers and regulators.
data envelopment analysis, environmental management practices, environmental performance, financial performance, institutional theory, resource-based view
Elmagrhi, Mohamed H.
4961f329-8a2d-47c5-83ee-34fc058030fe
Aslam, Shoaib
861bd306-4bbe-45ca-ac97-d04a22f63b6f
Rehman, Ramiz ur
20fb2646-ebe9-4e1e-a476-d8540fe78573
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
20 November 2021
Elmagrhi, Mohamed H.
4961f329-8a2d-47c5-83ee-34fc058030fe
Aslam, Shoaib
861bd306-4bbe-45ca-ac97-d04a22f63b6f
Rehman, Ramiz ur
20fb2646-ebe9-4e1e-a476-d8540fe78573
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Elmagrhi, Mohamed H., Aslam, Shoaib, Rehman, Ramiz ur and Ntim, Collins
(2021)
Environmental management practices and financial performance using data envelopment analysis in Japan: the mediating role of environmental performance.
Business Strategy and the Environment.
(doi:10.1002/bse.2700).
Abstract
This study investigates the relationship between environmental management practices (EMPs) and financial performance (FP) and consequently ascertains whether environmental performance (EP) can mediate the EMPs–FP nexus. Distinctly using data envelopment analysis and generalised method of moments techniques to analyse a comprehensive dataset of Nikkei 225 listed firms from 2007 to 2018 (1920 firm-year observations), our findings first suggest that EMPs have a positive effect on FP. Second, the desired EP can be achieved through the adoption of comprehensive EMPs. Third, improved EP has a substantial impact on shaping the EMPs' effect on FP. These findings are consistent with the predictions of resource-based view and institutional theories. The results are robust to controlling for different types of alternative measures and endogeneities. The findings have important implications for academics, investors, managers, policymakers and regulators.
Text
BSE_ACCEPTED_19_11_2020
- Accepted Manuscript
More information
Accepted/In Press date: 19 November 2020
e-pub ahead of print date: 4 December 2020
Published date: 20 November 2021
Additional Information:
Publisher Copyright:
© 2020 ERP Environment and John Wiley & Sons Ltd.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
Keywords:
data envelopment analysis, environmental management practices, environmental performance, financial performance, institutional theory, resource-based view
Identifiers
Local EPrints ID: 445336
URI: http://eprints.soton.ac.uk/id/eprint/445336
ISSN: 0964-4733
PURE UUID: 4d5e45d4-82f4-40d5-8c76-059479ee059f
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Date deposited: 02 Dec 2020 17:32
Last modified: 17 Mar 2024 06:07
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Contributors
Author:
Mohamed H. Elmagrhi
Author:
Shoaib Aslam
Author:
Ramiz ur Rehman
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