Does environmental cost affect Japanese Firms' performance?

Nila Firdausi Nuzula

Abstract


This article aims to examine the effect of environmental cost to financial performances, measured by profitability and firm value in Japanese chemical industry during 2012-2015.  Examining about this matter in Japan case is suitable since the government has settled guidelines that assist the companies to record and report their activities in environmental preservation. This study focuses on chemical industry in Japan because the industry has been potential to create hazardous wastes along with its daily businesses. In Japan, the companies are involved in Japan Chemical Industry Association (JCIA) that initiates international environmental programs called Responsible Care.

Keywords


Strategy Management; Japan Chemical Industry Association; Japanese chemical industry; Environmental costs

Full Text:

PDF

References


Chiang, B., Pelham, A., & Katsuo, Y. (2015). Environmental costs, social responsibility and corporate financial performance. American Journal of Business Research, 8(1), 39-56.

Cortez, M. A., & Cudia, C. P. (2010). The impact of environmental innovation on financial performance: The case of Japanese Automotive and Electronics Companies. Journal of International Business Research, 9(Special Issue 1), 33-46.

Cortez, M. A., & Penacerrada, N. T. (2010). Is it beneficial to incur environmental cost? A case study of Toyota Motors Corporation Japan. Journal of International Business Research, 9(Special Issue 2), 113.

Curcio, R. J., & Wolf, F. M. (1996). Corporate environmental strategy: Impact upon firm value. Journal of Finance and Strategic Decisions, 9(3).

de Villiers, C., & van Staden, C. (2010). Shareholders' requirements for corporate environmental disclosure: A cross country comparison. The British Accounting Review, 42, 227-240.

Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41-61.

Kokubu, K., & Kurasaka, T. (2002). Corporate Environmental Accounting: A Japanese Perspective. In M. Bennett, J. J. Bouma, & T. Wolters, Management Accounting: Informational and Institutional Development (pp. 161-173). Dordrecht, The Netherlands: Kluwer Academic Publishers.

Lasmin, & Nuzula, N. F. (2012). Corporate environmental expenses in the perspective of Japanese investors: Merely another type of expense? Journal of International Business research, 11(Special Issue 3).

Nakamura, E. (2011). Does environmental investment really contribute to firm performance? An empirical analysis using Japanese firms. Eurasian Business Review, 1(2), 91-111.

Schaltegger, S., & Burritt, R. (2006). Corporate sustainability accounting. In S. Schaltegger, M. Bennett, & R. Burritt, Sustainability, Accounting and Reporting (pp. 37-60). Dordrecht, Netherlands: Springer.

Spicer, B. H. (1978). Investors, corporate social performance and information disclosure: An empirical study. The Accounting Review, 53(1), 94-111.

Yamaguchi, K. (2009). Static and dynamic return on corporate environmental investment: Empirical evidence from Japan. Environmental and Resource Economic Journal.




DOI: http://dx.doi.org/10.26668/businessreview/2019.v4i1.105

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM

Refbacks

  • There are currently no refbacks.


Bookmark and Share

Desenvolvido por:

Logomarca da Lepidus Tecnologia

Intern. Journal of Profess. Bus. Review (e-ISSN: 2525-3654)

AOS- ESTRATEGIA E INOVAÇÃO, São Paulo-SP, Brazil.


Licença Creative Commons
Este obra está licenciado com uma Licença Creative Commons Atribuição-NãoComercial 4.0 Internacional.