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Does environmental CSR performance matter for corporate financial performance? Evidence from panel quantile regression

Author

Listed:
  • Younes Ben Zaied

    (EDC Paris Business School)

  • Béchir Ben Lahouel

    (IPAG Business School, Paris)

Abstract

The paper re-investigates the relationship between European firms' Environmental performance and their financial performance using a robust fixed effect panel quantile regression. We used data describing 303 European firms covering the period 2005-2017. We demonstrate that the influence of corporate green investment on financial performance takes different effects along the quantiles. Green investment might affect negatively corporate financial performance only for large quantiles of financial performance (75% and 90%). However, for lower quantile, green investment is likely to increase firms' financial performance.

Suggested Citation

  • Younes Ben Zaied & Béchir Ben Lahouel, 2021. "Does environmental CSR performance matter for corporate financial performance? Evidence from panel quantile regression," Economics Bulletin, AccessEcon, vol. 41(3), pages 938-951.
    • Handle: RePEc:ebl:ecbull:eb-20-00554
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental CSR; Financial performance; quantile regression; European firms;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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