The relationship between environmental score and financial performace / Min ZHANG / 2022

Titre : The relationship between environmental score and financial performace Type de document : Mémoire Auteurs : Min ZHANG, Auteur Année de publication : 2022 Importance : 31 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec cotre compte Office 365 via le bouton CONNEXION en haut de la page. Langues : Anglais (eng) Mots-clés : Management BENEFICE ; ENVIRONNEMENT ; PERFORMANCE Résumé : The relationship between environmental performance (EP) and financial performance (FP) of firms is a continuously debated issue in the recent decades as environmental problems have raised more and more attention. Our research is aimed to study this relationship by using survey data of European utility firms. The environmental performance is represented by the Bloomberg rated Environmental score (E score). We choose Return on Equity (ROE) and Net Profit Margin as the indicators of financial performance respectively to double conduct the study. Our results show that there is no clear relationship between ROE and E score, while there is a positive correlation between Net Profit Margin and E score, that is, the company with higher E score has greater net profit margin. This is because ROE has more complicated influence factors than net profit margin. E score as a unique variable can hardly explain ROE, in contrast, it has a significant influence on the expression of net profit margin. These outcomes are consistent with the logic that the more environment friendly a company is, the more likely to achieve sustainable returns and long-term development. Based on our research progress and data sources limitation, we suggest further studies using more observations and sectors other than European utility to verify the positive association between environmental and financial performance of a firm. Programme : MSc Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=568520