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CO 2 Emissions and Financial Performance of Socially Responsible Firms: An Empirical Survey
Author(s) -
Sariannidis Nikolaos,
Zafeiriou Eleni,
Giannarakis Grigoris,
Arabatzis Garyfallos
Publication year - 2013
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.1737
Subject(s) - social responsibility , business , econometric analysis , autoregressive conditional heteroskedasticity , industrial organization , economics , finance , econometrics , ecology , volatility (finance) , biology
A firm's financial performance is closely related to its environmental behavior. This result is valid especially in the case of socially responsible firms. In the present study a data econometric analysis is conducted based on a GARCH model for socially responsible and conventional firms. According to our findings, the performance of socially responsible firms is negatively related to an increase of global CO 2 emissions. The firms' costs for implementing environmental policies and the investors' attitude towards the aforementioned firms may account for our results. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.