Impacts of industrial heterogeneity and technical innovation on the relationship between environmental performance and financial performance

2.50
Hdl Handle:
http://hdl.handle.net/10547/622718
Title:
Impacts of industrial heterogeneity and technical innovation on the relationship between environmental performance and financial performance
Authors:
Li, Ruiqian ( 0000-0002-0744-2843 ) ; Ramanathan, Ramakrishnan ( 0000-0002-8861-2209 )
Abstract:
In this paper, we investigate the relationship between environmental performance (EP) and financial performance (FP) from the perspective of technical innovation in Chinese industrial sectors. We also consider industrial heterogeneity and take temporal variations of the link into account. We collect the required data from different Chinese statistical yearbooks from 2004 to 2015. We use an aggregated index of environmental pollutants as a proxy for EP and return on assets as a proxy for FP, and we employ research and development expenditure to capture technical innovation. The empirical results indicate that industrial heterogeneity exists and the EP–FP link varies in different industrial groups. There is no evidence that the EP–FP link becomes more positive and more significant over time. Furthermore, the mediation effect of technical innovation and environmental pressures can jointly affect the link. Finally, technical innovation partially mediates the EP–FP link but only in Chinese light-polluting sectors not in heavy-polluting sectors. The mediating role of technical innovation has a great impact on shaping the EP–FP link. When technical innovation partially mediates the focal link, apart from the indirect link, the direct EP–FP link is likely to be positive. If not, the direct EP–FP link is likely to be negative.
Affiliation:
Harbin University of Commerce; University of Bedfordshire
Citation:
Li R., Ramanathan R. (2018) 'Impacts of industrial heterogeneity and technical innovation on the relationship between environmental performance and financial performance', Sustainability, 10 (5), pp.1653-1688.
Publisher:
MDPI AG
Journal:
Sustainability
Issue Date:
21-May-2018
URI:
http://hdl.handle.net/10547/622718
DOI:
10.3390/su10051653
Additional Links:
http://www.mdpi.com/2071-1050/10/5/1653
Type:
Article
Language:
en
ISSN:
2071-1050
EISSN:
2071-1050
Sponsors:
Harbin University of Commerce
Appears in Collections:
Business and management

Full metadata record

DC FieldValue Language
dc.contributor.authorLi, Ruiqianen
dc.contributor.authorRamanathan, Ramakrishnanen
dc.date.accessioned2018-05-21T09:54:30Z-
dc.date.available2018-05-21T09:54:30Z-
dc.date.issued2018-05-21-
dc.identifier.citationLi R., Ramanathan R. (2018) 'Impacts of industrial heterogeneity and technical innovation on the relationship between environmental performance and financial performance', Sustainability, 10 (5), pp.1653-1688.en
dc.identifier.issn2071-1050-
dc.identifier.doi10.3390/su10051653-
dc.identifier.urihttp://hdl.handle.net/10547/622718-
dc.description.abstractIn this paper, we investigate the relationship between environmental performance (EP) and financial performance (FP) from the perspective of technical innovation in Chinese industrial sectors. We also consider industrial heterogeneity and take temporal variations of the link into account. We collect the required data from different Chinese statistical yearbooks from 2004 to 2015. We use an aggregated index of environmental pollutants as a proxy for EP and return on assets as a proxy for FP, and we employ research and development expenditure to capture technical innovation. The empirical results indicate that industrial heterogeneity exists and the EP–FP link varies in different industrial groups. There is no evidence that the EP–FP link becomes more positive and more significant over time. Furthermore, the mediation effect of technical innovation and environmental pressures can jointly affect the link. Finally, technical innovation partially mediates the EP–FP link but only in Chinese light-polluting sectors not in heavy-polluting sectors. The mediating role of technical innovation has a great impact on shaping the EP–FP link. When technical innovation partially mediates the focal link, apart from the indirect link, the direct EP–FP link is likely to be positive. If not, the direct EP–FP link is likely to be negative.en
dc.description.sponsorshipHarbin University of Commerceen
dc.language.isoenen
dc.publisherMDPI AGen
dc.relation.urlhttp://www.mdpi.com/2071-1050/10/5/1653en
dc.rightsGreen - can archive pre-print and post-print or publisher's version/PDF-
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectenvironmental performanceen
dc.subjectindustrial heterogeneityen
dc.subjectfinancial performanceen
dc.subjectinnovationen
dc.subjectmediationen
dc.subjectN120 International Business studiesen
dc.titleImpacts of industrial heterogeneity and technical innovation on the relationship between environmental performance and financial performanceen
dc.typeArticleen
dc.identifier.eissn2071-1050-
dc.contributor.departmentHarbin University of Commerceen
dc.contributor.departmentUniversity of Bedfordshireen
dc.identifier.journalSustainabilityen
dc.date.updated2018-05-21T09:42:22Z-
dc.description.noteopen access-
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