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A stakeholder framework for analyzing the impact of environmental management on firm value

A stakeholder framework for analyzing the impact of environmental management on firm value This article develops a stakeholder framework for analyzing the impact of environmental management on the value of the firm. The traditional financial model of firm valuation is reexamined using stakeholder theory. Next, environmental management is analyzed in this framework. The analysis focuses first on the firm's decision to undertake voluntary, costly, environmental management and considers why some firms undertake such activities while others do not. Conditions under which firm value is maximized by undertaking costly, voluntary environmental policies are outlined as are the expected limitations on such activities. Finally, public policy approaches aimed at encouraging corporate environmental management are examined. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Interdisciplinary Environmental Review Inderscience Publishers

A stakeholder framework for analyzing the impact of environmental management on firm value

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd. All rights reserved
ISSN
1521-0227
eISSN
2042-6992
DOI
10.1504/IER.2003.053896
Publisher site
See Article on Publisher Site

Abstract

This article develops a stakeholder framework for analyzing the impact of environmental management on the value of the firm. The traditional financial model of firm valuation is reexamined using stakeholder theory. Next, environmental management is analyzed in this framework. The analysis focuses first on the firm's decision to undertake voluntary, costly, environmental management and considers why some firms undertake such activities while others do not. Conditions under which firm value is maximized by undertaking costly, voluntary environmental policies are outlined as are the expected limitations on such activities. Finally, public policy approaches aimed at encouraging corporate environmental management are examined.

Journal

Interdisciplinary Environmental ReviewInderscience Publishers

Published: Jan 1, 2003

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