Environmental Performance and Firm Value: Evidence from Dow Jones Sustainability Index Europe

Pérez-Calderón, E.; Milanés-Montero, P.; Ortega-Rossell, F.J.

doi:10.22059/ijer.2012.571

Environmental Performance and Firm Value: Evidence from Dow Jones Sustainability Index Europe

Document Type : Original Research Paper

Authors

E. Pérez-Calderón

P. Milanés-Montero

F.J. Ortega-Rossell

Financial Economics and Accounting Department, Faculty of Business Studies and Tourism, University of Extremadura, Spain

10.22059/ijer.2012.571

Abstract

In this study we analyze the effects of environmental performance on the generation of firm value from Dow Jones Sustainability Index Europe. We use a sample of 122 firms from different sectors, except financial one, which belong to this Index for the years 2007 through 2009. The expected results, taking into account our hypotheses, should show a positive relationship between the generation of value and the environmental performance. Therefore, one of our main findings would be the importance of these behaviors in order to improve the economic performance, due to the better utilization of resources. These relationships
are not demonstrated by recognition by the stock market, short-term.

Keywords

Economic performance

Financial performance

environmental performance

Stakeholders Theory