Analysis of environmental CSR and managerial performance of Japanese firms

Abstract

This study examines influence of environment-related corporate social responsibility (CSR) on firm's financial performance. For this purpose, we use a data set comprising various industries over the period from 2012 to 2016. Environment-related CSR items can be classified into groups based on their characteristics. This study applies panel data estimations to data that comprises four financial performance measures such as ROA (return on assets) and ROE (return on equity) as dependent variables, and environment-related CSR items as independent variables. From empirical results, this study indicates environment-conscious management improves financial performance of firms.