Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2101019
The relationship between firms’ financial performance and performance measures of circular economy sustainability: an investigation of the G7 countries
Muddassar Sarfraz
Larisa Ivascu
Alin Emanuel Artene
Nicolae Bobitan
Diana Dumitrescu
Oana Bogdan
Valentin Burca
Sažetak
To achieve sustainable development, companies are aware that
they need to move from the ‘take-make-consume-throw away’
pattern toward an economic model based on sharing, re-use,
repair, refurbishing, and recycling. Implementing the circular economy
concept into a company’s business model is not an easy process,
given that some eco-innovations have higher costs with
direct effects on financial performance. Hence, this study aims to
determine the relationship between corporate financial performance
and the performance measures of the circular economy
through multivariate econometric estimations. The observations
considered in our sample reflect the financial and circular economy
performance for 411 companies with headquarters in the
European G7 members disclosed in the period 2014-2020. The EU
was chosen to carry out the study because the member states
subscribe to a general reporting framework and the European
Green Deal agreement, making it the most active in implementing
the circular economy model. The findings are based on the
econometric models related to the nature and amplitude of the
association relation between firms’ financial performance and circular
economy in connection with firms’ performance. The results
show that the performance of the circular economy has a relatively
small influence on the firms’ financial performance
Ključne riječi
Circular economy; sustainable development; financial performance; multivariate econometric estimations
Hrčak ID:
306439
URI
Datum izdavanja:
31.3.2023.
Posjeta: 1.019 *