Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord
<p dir="ltr">This study examines how R&D investments influence U.S. firms' abilities to align environmental initiatives with financial outcomes. It employs a sample of 229 firms listed on the S&P 500 between 2003 and 2021 and multivariate panel regression models with fix...
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| مؤلفون آخرون: | , , |
| منشور في: |
2024
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| _version_ | 1864513537988100096 |
|---|---|
| author | Mohamad H. Shahrour (21393698) |
| author2 | Alireza Rohani (16655415) Michal Wojewodzki (21393704) Dung V. Tran (21397901) |
| author2_role | author author author |
| author_facet | Mohamad H. Shahrour (21393698) Alireza Rohani (16655415) Michal Wojewodzki (21393704) Dung V. Tran (21397901) |
| author_role | author |
| dc.creator.none.fl_str_mv | Mohamad H. Shahrour (21393698) Alireza Rohani (16655415) Michal Wojewodzki (21393704) Dung V. Tran (21397901) |
| dc.date.none.fl_str_mv | 2024-12-25T03:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1002/ijfe.3109 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Carbon_Performance_and_Financial_Performance_How_R_D_Makes_a_Difference_Pre_and_Post_Paris_Accord/30304939 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Commerce, management, tourism and services Accounting, auditing and accountability Strategy, management and organisational behaviour Economics Applied economics Carbon performance Climate change policies Financial performance Paris Agreement R&D expenditures |
| dc.title.none.fl_str_mv | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p dir="ltr">This study examines how R&D investments influence U.S. firms' abilities to align environmental initiatives with financial outcomes. It employs a sample of 229 firms listed on the S&P 500 between 2003 and 2021 and multivariate panel regression models with fixed effects to explore how R&D moderates the relationship between corporate carbon performance (CP) and financial performance (ROA). Findings reveal that a 1% increase in CP corresponds to a 0.429% increase in ROA. Moreover, R&D positively enhances this association, with each additional 1% R&D amplifying the CP's effect on financial performance by 0.154 units. However, following the U.S. withdrawal from the Paris Climate Agreement, the moderating effect of R&D diminishes significantly. These results are robust to alternative analyses and emphasise the importance of stable climate policies for fostering green innovation. The study emphasises the important role of R&D to sustain long‐term competitive advantage in the face of evolving environmental regulations. It further suggests that firms can benefit from prioritising R&D, fostering innovation in green technologies and adapting to environmental regulations. This alignment of sustainability with profitability provides a competitive edge, promotes long‐term environmental goals and sets industry benchmarks, ultimately driving a more sustainable business landscape.</p><h2>Other Information</h2><p dir="ltr">Published in: International Journal of Finance & Economics<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1002/ijfe.3109" target="_blank">https://dx.doi.org/10.1002/ijfe.3109</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_736aecf52113b25c5542add0c54f6edd |
| identifier_str_mv | 10.1002/ijfe.3109 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/30304939 |
| publishDate | 2024 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris AccordMohamad H. Shahrour (21393698)Alireza Rohani (16655415)Michal Wojewodzki (21393704)Dung V. Tran (21397901)Commerce, management, tourism and servicesAccounting, auditing and accountabilityStrategy, management and organisational behaviourEconomicsApplied economicsCarbon performanceClimate change policiesFinancial performanceParis AgreementR&D expenditures<p dir="ltr">This study examines how R&D investments influence U.S. firms' abilities to align environmental initiatives with financial outcomes. It employs a sample of 229 firms listed on the S&P 500 between 2003 and 2021 and multivariate panel regression models with fixed effects to explore how R&D moderates the relationship between corporate carbon performance (CP) and financial performance (ROA). Findings reveal that a 1% increase in CP corresponds to a 0.429% increase in ROA. Moreover, R&D positively enhances this association, with each additional 1% R&D amplifying the CP's effect on financial performance by 0.154 units. However, following the U.S. withdrawal from the Paris Climate Agreement, the moderating effect of R&D diminishes significantly. These results are robust to alternative analyses and emphasise the importance of stable climate policies for fostering green innovation. The study emphasises the important role of R&D to sustain long‐term competitive advantage in the face of evolving environmental regulations. It further suggests that firms can benefit from prioritising R&D, fostering innovation in green technologies and adapting to environmental regulations. This alignment of sustainability with profitability provides a competitive edge, promotes long‐term environmental goals and sets industry benchmarks, ultimately driving a more sustainable business landscape.</p><h2>Other Information</h2><p dir="ltr">Published in: International Journal of Finance & Economics<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1002/ijfe.3109" target="_blank">https://dx.doi.org/10.1002/ijfe.3109</a></p>2024-12-25T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1002/ijfe.3109https://figshare.com/articles/journal_contribution/Carbon_Performance_and_Financial_Performance_How_R_D_Makes_a_Difference_Pre_and_Post_Paris_Accord/30304939CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/303049392024-12-25T03:00:00Z |
| spellingShingle | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord Mohamad H. Shahrour (21393698) Commerce, management, tourism and services Accounting, auditing and accountability Strategy, management and organisational behaviour Economics Applied economics Carbon performance Climate change policies Financial performance Paris Agreement R&D expenditures |
| status_str | publishedVersion |
| title | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord |
| title_full | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord |
| title_fullStr | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord |
| title_full_unstemmed | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord |
| title_short | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord |
| title_sort | Carbon Performance and Financial Performance: How R&D Makes a Difference Pre‐ and Post‐Paris Accord |
| topic | Commerce, management, tourism and services Accounting, auditing and accountability Strategy, management and organisational behaviour Economics Applied economics Carbon performance Climate change policies Financial performance Paris Agreement R&D expenditures |