Business Models for Circular Economy and Sustainable Development: the Case of Lease Transactions
The purpose of this paper is to discuss the features of leasing as a business model in the circular economy, which is presumed to support sustainable development by product recirculation and driving economic performance. In particular, this study highlights microeconomic benefits for listed Roman...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Academy of Economic Studies of Bucharest
2018-05-01
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| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | http://www.amfiteatrueconomic.ro/temp/Article_2724.pdf |
| Summary: | The purpose of this paper is to discuss the features of leasing as a business model in the
circular economy, which is presumed to support sustainable development by product
recirculation and driving economic performance. In particular, this study highlights
microeconomic benefits for listed Romanian companies, showing that adopting a "greener"
business model, as in the case of leasing, does not penalize firms economically but it is a
catalyst for increasing their performance, both in terms of accountancy-based measures
(return on assets and return on sales), but also in terms of the subjective perceptions of
investors and financial analysts operating on the capital market (proxied by Tobin’s Q and
market to book value of equity). Based on 266 observations from companies listed on the
Bucharest Stock Exchange (BSE) during 2013-2016, the study uses regression analysis to
show that financial performance is higher for quoted Romanian companies that use leasing
and renting and that performance is also directly associated with leasing intensity, i.e. the
share of the value of the rights to use leased goods in the total value of property, plant and
equipment. |
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| ISSN: | 1582-9146 2247-9104 |