Eco-efficiency and firm value of Malaysian firms
The objective of the study is to investigate eco-efficiency as a proxy for environmental policy and its effect on the overall value of the firm. The study adopts Ohlson's value relevance model in explaining how value relevant the concept of eco-efficiency is to the firm. The sample comprises 66...
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| Main Authors: | , |
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| Format: | Article |
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Inderscience Enterprises Ltd.
2015
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/18422/ http://doi.org/10.1504/IJMFA.2015.074902 |
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| Summary: | The objective of the study is to investigate eco-efficiency as a proxy for environmental policy and its effect on the overall value of the firm. The study adopts Ohlson's value relevance model in explaining how value relevant the concept of eco-efficiency is to the firm. The sample comprises 667 non-financial firms quoted on the Bursa Malaysia as at 2013. The result of the analysis reveals a positive association existing between eco-efficiency and the value of the firm, indicating that Malaysian firms engaging in eco-efficiency are performing better in terms of firm value than firms not engaging in eco-efficiency. This study is a pioneering study examining eco-efficiency from a developing country perspective, specifically from the Malaysian environment.The findings of the study will prove to shareholders and investors that eco-efficient firms can increase its earnings in the future, and therefore such a policy will not affect the financial aim of the company. |
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