Is there a Connection among Environmental and Financial Performance of a Company in Developing Countries? Evidence from Romania.

AbstractThis paper analyzes the existence of a connection among corporate environmental performance and financial position and performance of a company in developing countries such as Romania. This paper mainly aims at assessing if obtaining environmental performance influences the costs, the revenues and the profitability of a company. Does better environmental performance increase the profitability or the rates of return of the company? Does better environmental performance determine the growth of revenues or the decrease of costs? In order to respond to the above questions we used a panel of Romanian economic entities for a time period of 6 years starting from 2005 until 2010. The results show we can’t establish a significant link between the two dimensions studied. The result of the study is confirmed by the literature review, which revealed that in developing countries were not demonstrated significant links between studied indicators unlike mature economies where was evidenced a positive or a negative correlation