What does targeting ecological sustainability mean for company financial performance?
研究美国大公司发现，追求生态可持续性虽能提升环境合法性，但对长期财务绩效的正面影响不如不追求可持续性，且环境合法性是影响财务绩效的关键中介。
Abstract This study empirically examines the effects of companies' environmental orientation on their long‐run financial performance. It also examines the mediating roles of environmental legitimacy and environmental performance. We use PLS‐SEM among a sample of large U.S.‐based companies. The results show that an environmental orientation that targets ecological sustainability is directly and positively associated with the debt ratio and with long‐run market value but to a lesser degree than what is obtained by not targeting ecological sustainability. Targeting ecological sustainability has a greater positive impact on environmental legitimacy than not targeting ecological sustainability. Environmental legitimacy, but not environmental performance, mediates the link between environmental orientation and long‐run profitability and market value. These findings suggest that targeting ecological sustainability is important for improving environmental legitimacy, but companies are not proactive in improving environmental performance. This study offers insights to managers for improving financial performance by targeting ecological sustainability.