Throwing light on the relationship between voluntary environmental certification and corporates’ financial performance: a meta-analysis-based study

Abstract

This article provides the first meta-analysis to investigate the relationship between the adoption of the internationally agreed ISO 14,001 and/or the Eco-Management and Audit Scheme, the Voluntary Environmental Certification, and Corporate Financial Performance, with an examination of treatment effect, whereby better performance is due to the beneficial effects of Voluntary Environmental Certification, together with selection effect, whereby better performance precedes accreditation. Based on a sample of 60 independent studies drawn from 57 academic papers, the findings of an analysis of 192,752 observations reveal a positive association between Voluntary Environmental Certification (ISO 14,001 and EMAS) and Corporate Financial Performance. Furthermore, the results show a stronger positive association for companies with better financial performance before implementing the environmental management system. The results also confirm that the association analysed is moderated by the criteria used to measure the corporate financial performance.