Does cultural economics affect country’s competitiveness?

Abstract

The relationship between company environmental performance and financial difficulty is investigated in this study. We find that environmental performance is adversely correlated with the market's perceived likelihood of experiencing financial trouble using a sample of Australian companies. Additionally, for businesses with a higher level of risk, the negative relationship between environmental performance and the likelihood of financial difficulty is more pronounced. The results offer crucial empirical evidence about the effects of environmental performance on risk management in businesses. In recent years, there has been an enormous increase in the pressure on high-emitting economies to reduce their carbon emissions. However, a significant concern has been raised about how these initiatives may affect the firm's financial performance (FP). This study examines the connection between India companies' environmental performance (EP) and financial performance (FP), taking the COVID-19 outbreak into account. Data were gathered from Refinitiv DataStream and cover the years 2017 through 2020. The innovative dynamic panel bootstrap corrected fixed effects and panel corrected standard errors methods were used in addition to the fixed-effects regression to test the hypotheses. Two significant outcomes were obtained. In the beginning, there is only flimsy evidence that increasing EP raises enterprises' FP.

Keyword : India, Environmental performance, Financial Distress,