科研成果详情

Stakeholders including managers, shareholders, customers, suppliers, communities, and government have raised increasing concerns about corporate social responsibilities (CSR). The objective of this research is to examine the impact of environmental performances measured by percentage change of carbon emissions on corporate operating and financial performances. We collect data from China and Hong Kong SAR about carbon emission records at individual company level. This study adds a forward 1-year lag effect on dependent variables measuring corporate performances. We incorporate company size, leverage ratio, sales growth rate, sector, and location as control variables. By conducting random-effect panel data analysis, the results show that carbon reductions enhance corporate operational and financial performances measured by ROA and Tobin’s q, respectively. Our work suggests that the environmental efforts would result in better managerial decision-making and be compensated by higher profitability in the immediately following year.