Threshold Effect Analysis of the Relationship between Environmental Responsibility and Financial Performance
The paper examines environmental responsibility threshold effect on the financial performance of JSE SRI’s firms for the period 2008–2014. Employing bootstrap dynamic panel threshold estimations, the paper confirms the existence of triple threshold in all the regression relationship. Furthermore,...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Primorska
2018-12-01
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| Series: | Managing Global Transitions |
| Subjects: | |
| Online Access: | http://www.hippocampus.si/ISSN/1854-6935/16.355-377.pdf |
| Summary: | The paper examines environmental responsibility threshold effect on the
financial performance of JSE SRI’s firms for the period 2008–2014. Employing
bootstrap dynamic panel threshold estimations, the paper confirms
the existence of triple threshold in all the regression relationship. Furthermore,
the study established a nonlinear (inverted U-shape) association
between environmental initiative,measured by energy usage intensity and
return on sale, and a linear (inverse U-shape) relationship between carbon
input intensity and market value of equity deflated by sale.We also found
that return on sale decreases by –0.08868 when environmental responsibility,
measured by energy usage intensity ratio exceeds 0.00093. The results
however showed that an increase in energy usage intensity ratio at
any point increases equity returns. |
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| ISSN: | 1581-6311 1854-6935 |