Open AccessDoes corporate environmental responsibility affect investor future goal in the energy sector firms?
Author(s) -
Arum Setyowati,
Nasyiah Hasanah Purnomowati,
D. N. O. Sari,
Evandi Syahrul Ramadhan
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/905/1/012140
Subject(s) - business , stakeholder , sample (material) , corporate social responsibility , affect (linguistics) , accounting , energy sector , stakeholder theory , energy (signal processing) , finance , industrial organization , economics , natural resource economics , public relations , management , linguistics , chemistry , philosophy , statistics , mathematics , chromatography , political science
This study investigates the relationship between corporate environmental responsibility and firm’s financial performance by using a sample set of 2,241 firm-year observations representing 470 unique energy firms from 30 countries from 2013–2020. Supporting stakeholder theory, we find that firms with better environmental responsibility actions are associated with higher Tobins’q, suggesting that the investors react positively to the firm’s environmental initiatives. Overall, our findings suggest that firms in the energy sector should pay attention to corporate environmental responsibility practices to obtain a good response from the investors and achieve the firm’s long-term financial goals.