Institutional quality and firms' recycling performance
Nicolae Stef1, Nabila Arfaoui2, Sami Ben Jabeur2
1Université Bourgogne Europe, Burgundy School of Business, CEREN EA 7477, 21000, Dijon, France.
Journal of Environmental Management
|May 16, 2025
Summary
Strong political stability and accountability drive corporate recycling. Stable institutions and effective governance encourage firms to improve their waste management and recycling performance.
Area of Science:
- Environmental Economics
- Corporate Sustainability
- Institutional Theory
Background:
- The institutional environment significantly influences corporate adoption of recycling practices.
- Understanding these influences is key to enhancing corporate environmental performance.
Purpose of the Study:
- To investigate the impact of institutional stability and conduciveness on corporate recycling performance.
- To analyze how political stability, rule of law, governance, market, and administrative infrastructure affect waste recycling by firms.
Main Methods:
- Analysis of data from 1096 nonfinancial listed firms across 40 countries (2012-2024).
- Econometric estimation to determine the relationship between institutional factors and corporate recycling performance.
Main Results:
- Firms in countries with high political accountability and stability demonstrate higher recycling rates.
- Political stability and accountability positively correlate with increased corporate waste recycling.
Conclusions:
- Political actors and stable institutions play a vital role in promoting corporate recycling.
- Effective governance and political monitoring enhance firms' ecological impact management and recycling efforts.
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