Determinants and financial consequences of environmental performance and reporting: A literature review of European archival research

Patrick Velte

doi:10.1016/j.jenvman.2023.117916

Determinants and financial consequences of environmental performance and reporting: A literature review of European archival research

Patrick Velte

Research output: Journal contributions › Scientific review articles › Research

42 Citations (Scopus)

Abstract

Motivated by the EU Green Deal project as a unique setting, we present the first literature review of firm- and country-related determinants of environmental performance (EP) and environmental reporting (ER) and their financial consequences for the European capital market. Based on legitimacy and stakeholder theories, we conducted a structured literature review and examined 124 peer-reviewed empirical-quantitative (archival) studies. There were clear indications that board gender diversity, sustainability board committees, firm size, and environmentally sensitive industries are the main drivers of increased environmental outputs. Moreover, although positive financial consequences of increased EP and ER were identified, this was true for accounting-based financial performance but not for market-based measures.

Translated title of the contribution	Motivated by the EU Green Deal project as a unique setting, we present the first literature review of firm- and country-related determinants of environmental performance (EP) and environmental reporting (ER) and their financial consequences for the European capital market. Based on legitimacy and stakeholder theories, we conducted a structured literature review and examined 124 peer-reviewed empirical-quantitative (archival) studies. There were clear indications that board gender diversity, sustainability board committees, firm size, and environmentally sensitive industries are the main drivers of increased environmental outputs. Moreover, although positive financial consequences of increased EP and ER were identified, this was true for accounting-based financial performance but not for market-based measures.
Original language	English
Article number	117916
Journal	Journal of Environmental Management
Volume	340
Number of pages	13
ISSN	0301-4797
DOIs	https://doi.org/10.1016/j.jenvman.2023.117916
Publication status	Published - 15.08.2023

Bibliographical note

Publisher Copyright:
© 2023 Elsevier Ltd

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 12 Responsible Consumption and Production
SDG 13 Climate Action

Research areas and keywords

Management studies
Sustainability sciences, Management & Economics
Carbon performance
carbon reporting
environmental performance
Environmental reporting
legitimacy theory
Stakeholder theory

ASJC Scopus Subject Areas

Environmental Engineering
Waste Management and Disposal
Management, Monitoring, Policy and Law

Access to Document

10.1016/j.jenvman.2023.117916

Cite this

@article{e155ad3d36354efbb013ec495bcac804,

title = "Determinants and financial consequences of environmental performance and reporting: A literature review of European archival research",

abstract = "Motivated by the EU Green Deal project as a unique setting, we present the first literature review of firm- and country-related determinants of environmental performance (EP) and environmental reporting (ER) and their financial consequences for the European capital market. Based on legitimacy and stakeholder theories, we conducted a structured literature review and examined 124 peer-reviewed empirical-quantitative (archival) studies. There were clear indications that board gender diversity, sustainability board committees, firm size, and environmentally sensitive industries are the main drivers of increased environmental outputs. Moreover, although positive financial consequences of increased EP and ER were identified, this was true for accounting-based financial performance but not for market-based measures.",

keywords = "Management studies, Sustainability sciences, Management \& Economics, Carbon performance, carbon reporting, environmental performance, Environmental reporting, legitimacy theory, Stakeholder theory",

author = "Patrick Velte",

note = "Publisher Copyright: {\textcopyright} 2023 Elsevier Ltd",

year = "2023",

month = aug,

day = "15",

doi = "10.1016/j.jenvman.2023.117916",

language = "English",

volume = "340",

journal = "Journal of Environmental Management",

issn = "0301-4797",

publisher = "Academic Press Inc.",

}

TY - JOUR

T1 - Determinants and financial consequences of environmental performance and reporting: A literature review of European archival research

AU - Velte, Patrick

PY - 2023/8/15

Y1 - 2023/8/15

N2 - Motivated by the EU Green Deal project as a unique setting, we present the first literature review of firm- and country-related determinants of environmental performance (EP) and environmental reporting (ER) and their financial consequences for the European capital market. Based on legitimacy and stakeholder theories, we conducted a structured literature review and examined 124 peer-reviewed empirical-quantitative (archival) studies. There were clear indications that board gender diversity, sustainability board committees, firm size, and environmentally sensitive industries are the main drivers of increased environmental outputs. Moreover, although positive financial consequences of increased EP and ER were identified, this was true for accounting-based financial performance but not for market-based measures.

AB - Motivated by the EU Green Deal project as a unique setting, we present the first literature review of firm- and country-related determinants of environmental performance (EP) and environmental reporting (ER) and their financial consequences for the European capital market. Based on legitimacy and stakeholder theories, we conducted a structured literature review and examined 124 peer-reviewed empirical-quantitative (archival) studies. There were clear indications that board gender diversity, sustainability board committees, firm size, and environmentally sensitive industries are the main drivers of increased environmental outputs. Moreover, although positive financial consequences of increased EP and ER were identified, this was true for accounting-based financial performance but not for market-based measures.

KW - Management studies

KW - Sustainability sciences, Management & Economics

KW - Carbon performance

KW - carbon reporting

KW - environmental performance

KW - Environmental reporting

KW - legitimacy theory

KW - Stakeholder theory

UR - https://www.scopus.com/pages/publications/85154041455

UR - https://www.mendeley.com/catalogue/b0693c81-603e-33ee-8138-09a9d91372cd/

U2 - 10.1016/j.jenvman.2023.117916

DO - 10.1016/j.jenvman.2023.117916

M3 - Scientific review articles

C2 - 37141659

SN - 0301-4797

VL - 340

JO - Journal of Environmental Management

JF - Journal of Environmental Management

M1 - 117916

ER -

Determinants and financial consequences of environmental performance and reporting: A literature review of European archival research

Abstract

Bibliographical note

UN SDGs

Research areas and keywords

ASJC Scopus Subject Areas

Access to Document

Fingerprint

Cite this