The impact of innovation on the relationship between carbon emissions and corporate financial performance.

Keywords
Loading...
Thumbnail Image
Issue Date
2020-08-19
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
As the global awareness of climate change is rising, companies are increasingly trying to adapt their corporate environmental performance to stay competitive. This thesis aims to examine the relationship between carbon emissions and corporate financial performance and to what extent innovation moderates this relationship. Panel data consisting of 238 firms in 14 European countries for the period 2006 to 2018 is used. Four sub-models are developed with different proxies for corporate financial performance. The results indicate a negative effect of carbon emissions on a firm’s financial performance using accounting-based and market-based financial performance proxies. Furthermore, the influence of innovation on the relationship between carbon emissions and a firm’s financial performance is analyzed. A significant moderation effect is indicated by the results, with different outcomes for the sub-models. The findings imply that corporate environmental performance is positively related to a firm’s financial performance and that innovation moderates this relationship. Keywords: Carbon emissions, climate change, corporate environmental performance, innovation
Description
Citation
Faculty
Faculteit der Managementwetenschappen