Corporate environmental performance and its impact on financial performance and financial risk: Evidence from Australia
type: CreativeWork
description: This thesis consists of four essays on Corporate Environmental Performance (CEP) and its impact on Corporate Financial Performance (CFP). The first essay is entitled “Emission Indices for Hazardous Substances: An Alternative Measure of Corporate Environmental Performance”. This essay reviewed significant interdisciplinary research and concluded that firm chemical release/emission can be used as a proxy for a firm measure of environmental performance. It also proposed that due to the variety of chemicals and different levels of toxicity, a risk factor should be calculated for all chemicals on the basis of human health risk, environment risk and risk of exposure. Once a single risk factor is calculated for each chemical, then it should be multiplied by the level of each company chemical release that is reported to National Pollutant Inventory in order to calculate the weighted average risk factor for each company. Thus, the weighted average risk is a robust measure having the combined effect of level of toxicity and volume of chemical emissions. Once the environmental performance index is formulated, the second essay investigated the nature of the relationship between environmental performance and financial performance of publicly listed companies in Australia. The second essay provided evidence that the nature of the relationship between environmental performance and financial performance is positive. Further, this study divided the sample into a period of economic growth (2001-2007) and a period of economic contraction (2008-2010). The multivariate regression estimation shows a positive relation between CEP and CFP in the period of economic growth but during the extra ordinary circumstances like the financial crisis this relationship is insignificant. This research is of great relevance for managers, academics and society at large. The third essay investigates the relationship between Corporate Environmental Performance (CEP) and financial risk for Australian listed…
abstract: This thesis consists of four essays on Corporate Environmental Performance (CEP) and its impact on Corporate Financial Performance (CFP). The first essay is entitled “Emission Indices for Hazardous Substances: An Alternative Measure of Corporate Environmental Performance”. This essay reviewed significant interdisciplinary research and concluded that firm chemical release/emission can be used as a proxy for a firm measure of environmental performance. It also proposed that due to the variety of chemicals and different levels of toxicity, a risk factor should be calculated for all chemicals on the basis of human health risk, environment risk and risk of exposure. Once a single risk factor is calculated for each chemical, then it should be multiplied by the level of each company chemical release that is reported to National Pollutant Inventory in order to calculate the weighted average risk factor for each company. Thus, the weighted average risk is a robust measure having the combined effect of level of toxicity and volume of chemical emissions. Once the environmental performance index is formulated, the second essay investigated the nature of the relationship between environmental performance and financial performance of publicly listed companies in Australia. The second essay provided evidence that the nature of the relationship between environmental performance and financial performance is positive. Further, this study divided the sample into a period of economic growth (2001-2007) and a period of economic contraction (2008-2010). The multivariate regression estimation shows a positive relation between CEP and CFP in the period of economic growth but during the extra ordinary circumstances like the financial crisis this relationship is insignificant. This research is of great relevance for managers, academics and society at large. The third essay investigates the relationship between Corporate Environmental Performance (CEP) and financial risk for Australian listed…
author: Muhammad, Noor
license: https://researchcommons.waikato.ac.nz/bitstreams/2aab32c1-1e17-4dd3-bfdf-bd18ce253cca/download
date published: 2014
date modified: 2026-07-24T05:57:38Z
provider: University Waikato
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Waikato