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RE: Online papers on env perf vs financial perf



See also

1) http://www.innovestgroup.com/
2) http://www.winslowgreen.com/ and http://www.greencentury.com/index.htm
3)InfoTrac Web: InfoTrac OneFile.

 

   Source:  Management Science, August 2000 v46 i8 p1059.
 

    Title:  Do Corporate Global Environmental Standards Create or Destroy
            Market Value?
   Author:  Glen Dowell, Stuart Hart and Bernard Yeung
 

 Author's Abstract: COPYRIGHT 2000 Informs

Arguments can be made on both sides of the question of whether a stringent
global corporate environmental standard represents a competitive asset or
liability for multinational enterprises (MNEs) investing in emerging and
developing markets. Analyzing the global environmental standards of a sample
of U.S.-based MNEs in relation to their stock market performance, we find
that
firms adopting a single stringent global environmental standard have much
higher market values, as measured by Tobin's q, than firms defaulting to
less
stringent, or poorly enforced host country standards. Thus, developing
countries that use lax environmental regulations to attract foreign direct
investment may end up attracting poorer quality, and perhaps less
competitive,
firms. Our results also suggest that externalities are incorporated to a
significant extent in firm valuation. We discuss plausible reasons for this
observation. (Direct Investment in Developing Countries; Firm Value;
Firm-Level Environmental Policy)
 

 Subjects:  Corporations - Environmental policy
            Developing countries - Environmental policy
            Environmental policy research - Research
 

                   RN:  A65301906
 

                                -- End --

Nick Gill
UMass Boston
www.stepsite.org

-----Original Message-----
From: Burton Hamner [mailto:bhamner@cleanerproduction.com]
Sent: Wednesday, January 31, 2001 3:55 PM
To: ONE-L; p2tech; Infoterra; ECDM; Jeremy Haggar; AP CP List
Subject: Online papers on env perf vs financial perf


These have just been posted by Environmental-Expert.Com.  More ammunition
showing that being good for envir is good for business.  needs free adobe
acrobat reader to display - www.adobe.com

The Relationship Between Environmental Disclosures and Financial
Performance: an Empirical Study of us Firms. For the full article (in pdf
format), click here
http://www.environmental-expert.com/magazine/wiley/ecomanagement/ema%20paper
1.pdf

Superior Eco-Efficiency Performance in Industry A paper about the linkages
between superior environmental performance and superior competitiveness and
profitability. For the full article, click here
http://www.environmental-expert.com/articles/article841/environmentalperform
ance.pdf

The obvious implication of these articles for promoting Cleaner Production
and sustainable growth is that development programs could start developing
portfolios of the better performing (enviro/financial) companies, even SMEs,
and advertise them to potential investors, thus mobilizing capital seeking
good growth potential, with a conscience.  Since the research published
above is about public companies, the obvious next need is to find some way
to evaluate the business/enviro performance of small private manufacturing
firms.  Most Cleaner Production/Pollution Prevention technical assistance
programs have records of the companies that have attended their conferences
workshops, typically they could identify several hundred companies that have
expressed interest in this topic over a few years' period.  Then some kind
of rapid assessment tool could be applied to rate the firms, find the good
ones, and have a nice cocktail party introducing the owners to socially
responsible investors and lenders who like to support growth with quality
and sustainability.

Burt Hamner
www.cleanerproduction.com