| Summary: | 碩士 === 東吳大學 === 會計學系 === 91 === Because of the more restricted environmental regulations and the rise of people’s environmental consciousness, corporations nowadays put more emphasis on environmental issues than before. Responding to environmental challenges, however, has always been a costly and complicated proposition for corporations, and ambitious environmental goals do have real economic costs. Therefore, the most important questions that corporations care about are “Does it pay to be green?” “Does stronger environmental performance also lead to better financial performance?” and “Does the firm with high environmental performance tend to be profitable?”
To explore these questions, this study uses the environmental ratings that of the manufacturing firms by EPA Taiwan in 1998 and 2000 as an indicator for environmental performance to analyze its relationship with firms’ financial performance. It is found that environmental performance doesn’t have significant influence on firms’ financial performance. In the aspect of the relationship between market value and environmental performance of the firm, it is also found that investor appears to care rarely about the environmental performance so that environmental performance doesn’t have significant influence on market value of the firms. Besides, this study also test whether the expenditure of environmental improvement in manufacturing process improve the financial performance of a firm, but it is found that such expenditure can’t significantly raise the profitability of a firm.
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