Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality

Vasanth Vinayagamoorthi; Selvam Murugesan; Lingaraja Kasilingam; Rajesh Ramkumar Ramachandran

EN

Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality

Abstract

Sustainable Development enhances the human life, with good eco facilities. The way to move toward the sustainable development is by giving best solutions to the issues of unbalanced ecological, environmental and economic development. This paper investigates the relationship between the environmental performance and the profitability variables such as ROA, ROE, ROCE, and ROS of the sample firms in India. Granger Causality Test was used to examine bidirectional causality running from Energy Intensity to Profitability of the Firm. The study identified causal relationship that existed among the environmental performance and profitability of the firm. Further, it is found that there was an inverse relationship between ROCE and energy intensity of the firm while direct relationship existed among ROA, ROE, ROS and Energy Intensity. It is suggested that the practitioners, policy makers etc. may adopt the environment friendly technologies and encourage the Indian firms to use more energy efficient technology.

Keywords

Environmental Performance, Firms’ Profitability, Energy Intensity, Causal Effect

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Vasanth Vinayagamoorthi This is me

Selvam Murugesan This is me

Lingaraja Kasilingam This is me

Rajesh Ramkumar Ramachandran This is me

Publication Date

June 1, 2015

Submission Date

June 1, 2015

Acceptance Date

-

Published in Issue

Year 2015 Volume: 5 Number: 2

IZ

https://izlik.org/JA48SP23FU

Cite

RIS / Bibtex

APA

Vinayagamoorthi, V., Murugesan, S., Kasilingam, L., & Ramachandran, R. R. (2015). Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality. International Journal of Energy Economics and Policy, 5(2), 433-439. https://izlik.org/JA48SP23FU

AMA

1.Vinayagamoorthi V, Murugesan S, Kasilingam L, Ramachandran RR. Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality. IJEEP. 2015;5(2):433-439. https://izlik.org/JA48SP23FU

Chicago

Vinayagamoorthi, Vasanth, Selvam Murugesan, Lingaraja Kasilingam, and Rajesh Ramkumar Ramachandran. 2015. “Nexus Between Profitability and Environmental Performance of Indian Firms – An Analysis With Granger Causality”. International Journal of Energy Economics and Policy 5 (2): 433-39. https://izlik.org/JA48SP23FU.

EndNote

Vinayagamoorthi V, Murugesan S, Kasilingam L, Ramachandran RR (June 1, 2015) Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality. International Journal of Energy Economics and Policy 5 2 433–439.

IEEE

[1]V. Vinayagamoorthi, S. Murugesan, L. Kasilingam, and R. R. Ramachandran, “Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality”, IJEEP, vol. 5, no. 2, pp. 433–439, June 2015, [Online]. Available: https://izlik.org/JA48SP23FU

ISNAD

Vinayagamoorthi, Vasanth - Murugesan, Selvam - Kasilingam, Lingaraja - Ramachandran, Rajesh Ramkumar. “Nexus Between Profitability and Environmental Performance of Indian Firms – An Analysis With Granger Causality”. International Journal of Energy Economics and Policy 5/2 (June 1, 2015): 433-439. https://izlik.org/JA48SP23FU.

JAMA

1.Vinayagamoorthi V, Murugesan S, Kasilingam L, Ramachandran RR. Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality. IJEEP. 2015;5:433–439.

MLA

Vinayagamoorthi, Vasanth, et al. “Nexus Between Profitability and Environmental Performance of Indian Firms – An Analysis With Granger Causality”. International Journal of Energy Economics and Policy, vol. 5, no. 2, June 2015, pp. 433-9, https://izlik.org/JA48SP23FU.

Vancouver

1.Vasanth Vinayagamoorthi, Selvam Murugesan, Lingaraja Kasilingam, Rajesh Ramkumar Ramachandran. Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality. IJEEP [Internet]. 2015 Jun. 1;5(2):433-9. Available from: https://izlik.org/JA48SP23FU