ISO 14001 certification and financial performance: Selection effect versus treatment effect?

Dick, Gavin P.M. and Heras‐Saizarbitoria, Iñaki and Molina-Azorin, Jose F. (2011) ISO 14001 certification and financial performance: Selection effect versus treatment effect? Journal of Cleaner Production, 19 (1). pp. 1-12. ISSN 0959-6526. (The full text of this publication is not available from this repository)

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Official URL http://dx.doi.org/10.1016/j.jclepro.2010.09.002

Abstract

The paper explores the bi-directional relationship between ISO 14001 certification and financial performance with the aim of shedding light on whether better performance is due to the beneficial effects of ISO 14001 or due to selection-effects where better performance precedes accreditation. The study uses a five year longitudinal analysis to compare the financial performance of firms in Spain before and after certification. The results of a multivariate panel data analysis find that firms with better than average performance have a greater propensity to pursue accreditation but there is no evidence that improvements in performance follow certification. This suggests that the inference that environmental variables cause improved financial performance may be unwise in research studies that can only measure association.

Item Type:	Article
Uncontrolled keywords:	Environmental management; Certification; ISO 14001; Financial performance; Causation
Subjects:	H Social Sciences
Divisions:	Faculties > Social Sciences > Kent Business School
Depositing User:	Rebecca Stevenson
Date Deposited:	22 Mar 2010 12:15
Last Modified:	29 Apr 2014 10:29
Resource URI:	https://kar.kent.ac.uk/id/eprint/23921 (The current URI for this page, for reference purposes)