Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company data
This study uses data from listed companies in China from 2008 to 2021, constructs a comprehensive evaluation of corporate environmental performance from the perspective of internal efficiency and externalities based on the text analysis method, and analyzes the impact and mechanism of environmental...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2024-11-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2024.1489896/full |
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| _version_ | 1846167059735511040 |
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| author | Jing Hu Yanyun Zhao |
| author_facet | Jing Hu Yanyun Zhao |
| author_sort | Jing Hu |
| collection | DOAJ |
| description | This study uses data from listed companies in China from 2008 to 2021, constructs a comprehensive evaluation of corporate environmental performance from the perspective of internal efficiency and externalities based on the text analysis method, and analyzes the impact and mechanism of environmental performance on profitability. In addition, we find that improving environmental performance can significantly increase profitability, especially if the company tackles pollution at the source. Furthermore, the impact of environmental performance on profitability tends to be driven by external markets. Obtaining environmental certifications, awards, and green patents can provide positive feedback and significantly increase profitability. In addition, the mechanism analysis shows that environmental performance affects firm profitability by improving green technology innovation, reducing financing constraints and increasing operating income. Finally, the results of the heterogeneity analysis show that the profitability-enhancing effect of environmental performance is stronger in non-state-owned firms, in clean industries firms and in regions with carbon emission trading. |
| format | Article |
| id | doaj-art-90d3613738d34d2982a1d8a373e8b8b9 |
| institution | Kabale University |
| issn | 2296-665X |
| language | English |
| publishDate | 2024-11-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj-art-90d3613738d34d2982a1d8a373e8b8b92024-11-15T06:13:24ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2024-11-011210.3389/fenvs.2024.14898961489896Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company dataJing HuYanyun ZhaoThis study uses data from listed companies in China from 2008 to 2021, constructs a comprehensive evaluation of corporate environmental performance from the perspective of internal efficiency and externalities based on the text analysis method, and analyzes the impact and mechanism of environmental performance on profitability. In addition, we find that improving environmental performance can significantly increase profitability, especially if the company tackles pollution at the source. Furthermore, the impact of environmental performance on profitability tends to be driven by external markets. Obtaining environmental certifications, awards, and green patents can provide positive feedback and significantly increase profitability. In addition, the mechanism analysis shows that environmental performance affects firm profitability by improving green technology innovation, reducing financing constraints and increasing operating income. Finally, the results of the heterogeneity analysis show that the profitability-enhancing effect of environmental performance is stronger in non-state-owned firms, in clean industries firms and in regions with carbon emission trading.https://www.frontiersin.org/articles/10.3389/fenvs.2024.1489896/fullenvironmental performanceprofitabilitygreen technology innovationfinancing constraintstext analysis |
| spellingShingle | Jing Hu Yanyun Zhao Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company data Frontiers in Environmental Science environmental performance profitability green technology innovation financing constraints text analysis |
| title | Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company data |
| title_full | Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company data |
| title_fullStr | Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company data |
| title_full_unstemmed | Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company data |
| title_short | Improving corporate profitability from the inside out with environmental performance: an empirical analysis based on Chinese listed company data |
| title_sort | improving corporate profitability from the inside out with environmental performance an empirical analysis based on chinese listed company data |
| topic | environmental performance profitability green technology innovation financing constraints text analysis |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2024.1489896/full |
| work_keys_str_mv | AT jinghu improvingcorporateprofitabilityfromtheinsideoutwithenvironmentalperformanceanempiricalanalysisbasedonchineselistedcompanydata AT yanyunzhao improvingcorporateprofitabilityfromtheinsideoutwithenvironmentalperformanceanempiricalanalysisbasedonchineselistedcompanydata |