How do corporate environmental policy and corporate reputation affect risk‐adjusted financial performance?
研究了企业环境政策是否影响企业声誉，以及这一联系如何影响风险调整后的盈利能力和公司风险，发现环境参与和绿色产品创新是声誉的前因，声誉正向影响风险调整后的盈利能力和财务困境风险指标。
Abstract The current study aims to answer dual, related questions: Does corporate environmental policy affect corporate reputation, and does this link also influence risk‐adjusted profitability and company's risk? With a comprehensive framework involving analyses of each question, among a sample of firms traced by the Reputation Institute, this study reveals several notable results, after correcting for endogeneity biases. First, environmental engagement and green product innovation are both antecedents of corporate reputation. Second, corporate reputation has a positive impact on risk‐adjusted profitability and Z score indicator of financial distress risk. Thus, corporate environmental responsibility and green practices represent cospecialized assets that enhances an intangible asset, namely, corporate reputation. The latter influence constitutes a missing link between sustainable development and the firm's financial performance. Overall, environmental engagement and corporate reputation act as insurance‐like protections of firm competitiveness.