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An Empirical Study of Firm Environmental and Financial Performance: Evidence from Small and Medium Manufacturing Firms in Vietnam

VNU Journal of Science: Economics and Business

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Title An Empirical Study of Firm Environmental and Financial Performance: Evidence from Small and Medium Manufacturing Firms in Vietnam
 
Creator Tuân, Nhâm Phong
 
Description Abstract. There has been interest regarding the effects of environmental performance on financial performance over a given period. This paper studies the relationship between environmental and financial performance in Vietnam’s small and medium manufacturing firms by using the World Bank 2005 data on “Productivity and the Investment Climate”. Particularly, this research has investigated the relationship between ROA, accounting based measure of financial performance in the short term, and inspected times, an environmental variable measured by the number of times that a firm was inspected by the Environmental Agency. A firm that has incurred a high number of inspections has low environmental compliance. Based on a different level of environmental performance, this study constructs the “SME_high polluting” (SME_H) and “SME_low polluting” (SME_L) portfolio. The analytical results indicate that better pollution control neither improves nor undermines financial success. The SME_H group shows that high-inspected time, implying poor environmental performance has a statistically significant and positive impact on ROA implications for financial performance. The SME_L group, environmental and financial performances are not related statistically. Finally, several implications for SMEs, government sector, and researchers as well as future research direction are also provided.Keywords: Environmental, financial, performance, SMEs.
 
Publisher Vietnam National University, Hanoi
 
Date 2012-12-15
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://js.vnu.edu.vn/EAB/article/view/798
 
Source VNU Journal of Science: Economics and Business; Vol 28 No 5E
Chuyên san Kinh tế và Kinh doanh; Vol 28 No 5E
2588-1108
2615-9287
 
Language eng
 
Relation https://js.vnu.edu.vn/EAB/article/view/798/768
 
Rights Copyright (c) 2012 VNU Journal of Science: Economics and Bussiness