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

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

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

Year 2015, Volume: 5 Issue: 2, 433 - 439, 01.06.2015

Vasanth Vinayagamoorthi Selvam Murugesan Lingaraja Kasilingam Rajesh Ramkumar Ramachandran

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

Year 2015, Volume: 5 Issue: 2, 433 - 439, 01.06.2015

Vasanth Vinayagamoorthi Selvam Murugesan Lingaraja Kasilingam Rajesh Ramkumar Ramachandran

Abstract

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Details

Other ID	JA97CF63EK
Journal Section	Research Article
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
Published in Issue	Year 2015 Volume: 5 Issue: 2

Cite

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.
AMA	Vinayagamoorthi V, Murugesan S, Kasilingam L, Ramachandran RR. Nexus between Profitability and Environmental Performance of Indian Firms – An Analysis with Granger Causality. IJEEP. June 2015;5(2):433-439.
Chicago	Vinayagamoorthi, Vasanth, Selvam Murugesan, Lingaraja Kasilingam, and Rajesh Ramkumar Ramachandran. “Nexus Between Profitability and Environmental Performance of Indian Firms – An Analysis With Granger Causality”. International Journal of Energy Economics and Policy 5, no. 2 (June 2015): 433-39.
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	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, 2015.
ISNAD	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 5/2 (June 2015), 433-439.
JAMA	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, 2015, pp. 433-9.
Vancouver	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):433-9.