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Sustainable Development and Competitive Advantages – Utilizing Matching to Overcome Sample Selection Bias

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  • Mei‐Jane Teng
  • Shih‐Ying Wu

Abstract

This study investigates whether a firm can enhance its competitive advantages in intangible assets and financial performance by voluntarily obtaining the certification of environmental management system ISO 14001. Previous studies find mixed evidence for the effect of ISO 14001 certification on firm performance partly owing to sample selection bias. To overcome this bias, we utilize propensity score matching to find non‐certified firms that are comparable to certified firms. The evidence from our matching method suggests that ISO 14001 certified firms have higher values of intangible assets than non‐certified firms. Our study thus suggests that stakeholder engagement in firms' environmental management can be beneficial not only to the public, but also to shareholders. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

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  • Mei‐Jane Teng & Shih‐Ying Wu, 2018. "Sustainable Development and Competitive Advantages – Utilizing Matching to Overcome Sample Selection Bias," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 313-326, July.
    • Handle: RePEc:wly:corsem:v:25:y:2018:i:4:p:313-326
    DOI: 10.1002/csr.1462
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    2. Wenbin Long & Sihai Li & Huiying Wu & Xianzhong Song, 2020. "Corporate social responsibility and financial performance: The roles of government intervention and market competition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 525-541, March.
    3. Lujun Qi & Lixiang Wang & Wei'an Li, 2020. "Do mutual fund networks affect corporate social responsibility? Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 1040-1050, March.
    4. Mark Anthony Camilleri, 2022. "The rationale for ISO 14001 certification: A systematic review and a cost–benefit analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 1067-1083, July.
    5. Mudeer Ahmed Khattak & Buerhan Saiti, 2021. "Banks' environmental policy and business outcomes: The role of competition," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 302-317, January.

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