Value Relevance of Corporate Environmental Performance: A Comprehensive Analysis of Performance Indicators Using Korean Data
| Autor: | Jaywon Lee, Hyunwoo Choi, Ingoo Han |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Geography
Planning and Development lcsh:TJ807-830 lcsh:Renewable energy sources Management Monitoring Policy and Law ohlson model corporate environmental performance 0502 economics and business Relevance (information retrieval) Market value multidimensionality lcsh:Environmental sciences lcsh:GE1-350 Renewable Energy Sustainability and the Environment lcsh:Environmental effects of industries and plants 05 social sciences Enterprise value Public institution 050201 accounting Environmental economics value relevance lcsh:TD194-195 Accounting information system Business Performance indicator Value (mathematics) Social responsibility 050203 business & management |
| Zdroj: | Sustainability, Vol 12, Iss 7209, p 7209 (2020) Sustainability Volume 12 Issue 17 |
| ISSN: | 2071-1050 |
| Popis: | This paper examines the value relevance of corporate environmental performance (CEP) using individual environmental performance indicators and multidimensional constructs derived from Trumpp et al. (2015). Accounting information can be described as &lsquo value-relevant&rsquo when the information in financial statements has the ability to explain firm value. In recent years, stakeholders such as governments, public institutions, firms, customers, and local communities have recognized the importance of corporate environmental performance. Thus, one of the main research questions is whether corporate environmental performance is value relevant. The empirical results in this paper indicate that only a few individual environmental performance indicator variables are value relevant, while most environmental performance constructs have a significant impact on firm value. Our findings suggest that firm value significantly increases with improved environmental management or operational performance. In addition, environmental performance indicators and environmental performance constructs have a significant impact on firms in environmentally sensitive industries, confirming the notion of higher value relevance of environmental information for firms in these industries. This study contributes to prior literature by carrying out a comprehensive analysis on the multidimensional nature of corporate environmental performance and its impact on value relevance. This paper also reconciles extant literature on the construct validity of environmental performance indicators and environmental performance constructs by formulating standardized composite measures of CEP following Larker et al. (2007). |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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