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Does it pay to go green? The environmental innovation effect on corporate financial performance
Khouloud Farza1, Zied Ftiti2, Zaineb Hlioui1
1University of Tunis, ISG-T, LR GEF-2A, Tunis, Tunisia.
Abstract:
The current global economy demands synergies between ecological responsiveness and business models. To analyse this dynamic, this study investigates the relationship between green innovation and corporate financial performance for German HDAX companies from 2008 to 2019 by constructing an green innovation measure. A two-step GMM system and penalised-spline estimation are used to test the linear relationship between green innovation and financial proxies (return on assets, return on invested capital, and the market-to-book ratio). The results indicate a linear positive effect of green innovation on different financial performance measures. This suggests that green innovation drives resource efficiency and enhances corporate reputation, which, in turn, boosts financial performance.
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Design Example: Sustainability in Concrete Building
There are multiple approaches to achieve sustainability in a commercial concrete building. For instance, construct a concrete parking area under the building, utilizing pervious concrete paver blocks in open areas to facilitate rainwater collection through an underground...

