Does environmental cost affect Japanese Firms' performance?

Authors

DOI:

https://doi.org/10.26668/businessreview/2019.v4i1.105

Keywords:

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

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.

Downloads

Download data is not yet available.

Author Biography

Nila Firdausi Nuzula, Universitas Brawijaya

Department of Business Administration

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.

Downloads

Published

2019-05-23

How to Cite

Nuzula, N. F. (2019). Does environmental cost affect Japanese Firms’ performance?. International Journal of Professional Business Review, 4(1), 14–21. https://doi.org/10.26668/businessreview/2019.v4i1.105