Research Article
The impact of financial performance on environmental policy: does firm life cycle matter?
Khaled Elsayed,
David Paton,
Khaled Elsayed
Ain Shams University, Business Administration Department, Cairo, Egypt
Search for more papers by this authorCorresponding Author
David Paton
Nottingham University, Business School, Nottingham, UK
Nottingham University, Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, UKSearch for more papers by this authorKhaled Elsayed,
David Paton,
Khaled Elsayed
Ain Shams University, Business Administration Department, Cairo, Egypt
Search for more papers by this authorCorresponding Author
David Paton
Nottingham University, Business School, Nottingham, UK
Nottingham University, Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, UKSearch for more papers by this authorAbstract
Existing literature has provided inconclusive evidence regarding the impact of financial performance on firm policy relating to environmental issues. In this paper, we propose that the influence of corporate financial performance on corporate environmental policy is unlikely to be monotonic but, rather, will vary with firm life cycle. We test this hypothesis by the application of static and dynamic techniques on panel data from UK companies. The results provide support for our hypotheses that financial performance has the strongest impact on environmental policy in the maturity stage of the firm life cycle and the weakest impact in the rapid growth stage. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.
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