Is ISO 14001 certification effective?: an experimental analysis of firm profitability
This paper examines the effect environmental management certification (ISO 14001) has on publicly traded Brazilian companies profitability. Signaling theory predicts that the certification serves to signal to society good environmental behavior; allowing people to screen the different types of firms, improving the financial-economic performance of those firms that engage in this behavior. We performed difference-in-difference fixed effect design comparing the financial performance of companies with and without certification of their environmental management systems, using data on 552 companies over the period from 1996 to 2008. The results indicate that firms with an environmental management system certified according to the NBR ISO 14001:2004 standard tended to be more profitable, on average, than firms without certification.
Main Authors: | , , , |
---|---|
Format: | Digital revista |
Language: | English |
Published: |
ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração
2012
|
Online Access: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922012000500006 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
oai:scielo:S1807-76922012000500006 |
---|---|
record_format |
ojs |
spelling |
oai:scielo:S1807-769220120005000062012-05-14Is ISO 14001 certification effective?: an experimental analysis of firm profitabilityFerron,Renato TognereFunchal,BrunoNossa,ValcemiroTeixeira,Aridelmo J. C. certification profitability NBR ISO 14001:2004 This paper examines the effect environmental management certification (ISO 14001) has on publicly traded Brazilian companies profitability. Signaling theory predicts that the certification serves to signal to society good environmental behavior; allowing people to screen the different types of firms, improving the financial-economic performance of those firms that engage in this behavior. We performed difference-in-difference fixed effect design comparing the financial performance of companies with and without certification of their environmental management systems, using data on 552 companies over the period from 1996 to 2008. The results indicate that firms with an environmental management system certified according to the NBR ISO 14001:2004 standard tended to be more profitable, on average, than firms without certification.info:eu-repo/semantics/openAccessANPAD - Associação Nacional de Pós-Graduação e Pesquisa em AdministraçãoBAR - Brazilian Administration Review v.9 n.spe 20122012-05-01info:eu-repo/semantics/articletext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922012000500006en10.1590/S1807-76922012000500006 |
institution |
SCIELO |
collection |
OJS |
country |
Brasil |
countrycode |
BR |
component |
Revista |
access |
En linea |
databasecode |
rev-scielo-br |
tag |
revista |
region |
America del Sur |
libraryname |
SciELO |
language |
English |
format |
Digital |
author |
Ferron,Renato Tognere Funchal,Bruno Nossa,Valcemiro Teixeira,Aridelmo J. C. |
spellingShingle |
Ferron,Renato Tognere Funchal,Bruno Nossa,Valcemiro Teixeira,Aridelmo J. C. Is ISO 14001 certification effective?: an experimental analysis of firm profitability |
author_facet |
Ferron,Renato Tognere Funchal,Bruno Nossa,Valcemiro Teixeira,Aridelmo J. C. |
author_sort |
Ferron,Renato Tognere |
title |
Is ISO 14001 certification effective?: an experimental analysis of firm profitability |
title_short |
Is ISO 14001 certification effective?: an experimental analysis of firm profitability |
title_full |
Is ISO 14001 certification effective?: an experimental analysis of firm profitability |
title_fullStr |
Is ISO 14001 certification effective?: an experimental analysis of firm profitability |
title_full_unstemmed |
Is ISO 14001 certification effective?: an experimental analysis of firm profitability |
title_sort |
is iso 14001 certification effective?: an experimental analysis of firm profitability |
description |
This paper examines the effect environmental management certification (ISO 14001) has on publicly traded Brazilian companies profitability. Signaling theory predicts that the certification serves to signal to society good environmental behavior; allowing people to screen the different types of firms, improving the financial-economic performance of those firms that engage in this behavior. We performed difference-in-difference fixed effect design comparing the financial performance of companies with and without certification of their environmental management systems, using data on 552 companies over the period from 1996 to 2008. The results indicate that firms with an environmental management system certified according to the NBR ISO 14001:2004 standard tended to be more profitable, on average, than firms without certification. |
publisher |
ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração |
publishDate |
2012 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922012000500006 |
work_keys_str_mv |
AT ferronrenatotognere isiso14001certificationeffectiveanexperimentalanalysisoffirmprofitability AT funchalbruno isiso14001certificationeffectiveanexperimentalanalysisoffirmprofitability AT nossavalcemiro isiso14001certificationeffectiveanexperimentalanalysisoffirmprofitability AT teixeiraaridelmojc isiso14001certificationeffectiveanexperimentalanalysisoffirmprofitability |
_version_ |
1756432449660780544 |