Omaima A.G. Hassan
Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: new insights.
Hassan, Omaima A.G.; Romilly, Peter
This study examines the associations and causations between corporate economic performance, environmental disclosure and greenhouse gas emissions, utilising a large, longitudinal, multi-country dataset disaggregated between developed and developing countries. The methodology employs a simultaneous equation model with system estimation to deal with endogeneity between the variables, and Granger causality tests to indicate their direction of causation. A robust result is that lower emissions are strongly associated with better economic performance. After pretesting for stationarity, we find evidence of a one-way causation from emissions and environmental disclosure to economic performance, but no evidence of reverse causation. We also find strong evidence of a one-way causation from emissions to disclosure, but no evidence of reverse causation. The over-arching policy implication is that environmental performance, as measured by greenhouse gas emissions, plays a crucial role in the formulation of business strategy at firm level and government environmental policy at national and international levels.
|Journal Article Type||Article|
|Publication Date||Nov 30, 2018|
|Journal||Business strategy and the environment|
|Publisher||Wiley Open Access|
|Peer Reviewed||Peer Reviewed|
|Institution Citation||HASSAN, O.A.G. and ROMILLY, P. 2018. Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: new insights. Business strategy and the environment [online], 27(7), pages 893-909. Available from: https://doi.org/10.1002/bse.2040|
|Keywords||Economic; Environmental; Performance; Disclosure; Greenhouse gases; Environmental policy|
HASSAN 2018 Relations between corporate economic performance
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