Numerous empirical studies have examined how voluntary environmental<br />adoption and financial performance are related in enterprises from<br />industrialized countries; little attention has been paid to Taiwanese<br />enterprises. This work empirically explores how ISO14001 environmental<br />management systems (EMS) influences the financial performance of Taiwan<br />Stock Exchange (TSE) and over the counter (OTC) listed adopted companies<br />in Taiwan. Based on a sample of 369 ISO14001 certified firms and 706<br />non-certified firms, the regression results showed that firm age and<br />scale influence firm decisions regarding whether to acquire ISO14001<br />certification. Measures of profitability, productivity and Research and<br />Development (R and D) competence do not indicate any significant<br />differences between ISO14001 certified and non-certified companies in<br />terms of their financial performance. Since the institutional forces<br />such as greening supply chain pressures have become the major driver of<br />the moves of Taiwanese firms towards more environmentally responsible<br />operations, the estimation results demonstrate that Taiwanese firms<br />regard the ISO14001 standard as an acceptable means of seeking<br />legitimacy, establishing trust and long-term relationships with a wide<br />range of stakeholders, and deflecting the scrutiny and interest of<br />watchdog agencies and other interested parties worldwide; thus, no<br />significant correlation exists between environmental and financial<br />performance.
Yu Ling, L., & Tzu Yar, L. (2016). Financial performance in Taiwans ISO14001 environmental management systems (EMS). African Journal of Business Management, 5(22), 8952–8960. https://doi.org/10.5897/ajbm11.567