Author : Santanu Kumar Ghosh
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Association Between Corporate Environmental Performance and Firm Value of Some Selected Asian Companies by : Santanu Kumar Ghosh
Download or read book Association Between Corporate Environmental Performance and Firm Value of Some Selected Asian Companies written by Santanu Kumar Ghosh and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A) Introduction: It is generally held, that the business enterprises should act in environmentally responsible way. The issue of the impact of environmentally friendly behavior of business on its financial performance (CFP) still remains unresolved. Based on the context of developed countries, different studies show contradictory results about the utility of corporate environmental performance (CEP) with respect to the firm value. However, study in the developing country context, particularly on the Asian region is scanty. Therefore, the present study seeks to re-examine the relationship between the CEP and firm value of some selected Asian companies over the periods.b) Method: An empirical study with multiple linear regression models has been made to find out the relationship between CEP and firm value (in terms of market value) of 85 companies from Indian, China, Korea and Japan, on the basis of financial and non-financial reports from the periods 2010 to 2012.c) Results: The results show that the CEP has positive relationship with the change in the market value of the high CEP firm. Significant relationship is also found between actual CEP (in terms of 'quantitative' disclosure) and firm's market value. It is also found that the change in the firm value has positive correlation with such CEPs, which appear to have improved over the previous year. And, these results differ between companies from developed and developing countries.d) Discussion: The study brings out that a positive relationship exists between the CEP and CFP among the selected Asian companies. The result may motivate the companies from the developing regions to achieve a better state of CEP. A study with larger sample for longer period of time may provide better results.