Exploring the Impact of Circular Economy Practices on Corporate Performance: A Global Analysis

Abstract

This study investigates how the adoption of circular economy practices influences the financial performance of companies in the Food and Health Products sector, a strategically important industry for health, nutrition, and sustainability. Using panel data regression models applied to an international sample of 1081 listed firms over the period 2007–2021, the analysis combines indicators of circular practices from Refinitiv with financial information from Bloomberg. The results show that companies embracing circular strategies tend to achieve higher profitability and stronger market valuations. Beyond the environmental benefits, the evidence demonstrates that circular business models can generate tangible economic value, highlighting their strategic and policy relevance in a highly regulated sector. By providing large-scale firm-level empirical evidence, this study contributes to the growing literature on sustainability and finance and offers insights for regulators, investors, and managers committed to advancing the transition toward more responsible and resilient economic systems.