Correlations of Environment Friendly and Sustainability Business Orientation to Financial Results of Czech and Swiss Product Innovative Companies

článek ve sborníku ve WoS nebo Scopus

angličtina

Purpose of the article The research concentrates on finding correlations in between environmental friendly and sustainability approach of the companies and their financial performance indicators. Methodology/methods For the research purposes the data from European company database Amadeus were used. Concretely the data sample set is covered by 50 companies from the Czech Republic and Switzerland. Environment friendly and sustainability oriented business approach of the selected companies are represented by calculated Environmental Index. Standard financial ratios ROE, ROA and EBIT within last 5 fiscal years of the selected companies were used for evaluation of their financial performance. Correlations of Environmental Index and financial ratios were statistically tested in SPSS programme by using Spearman's corellation coefficient and presented in graphical, verbal and numeric form. Scientific aim The research objective is to find the most relevant financial performance on the basis of correlation in between environment friendly sustainable business orientation measured by Company Environmental Index and financial results of selected companies. Findings The research shows that the return of asset and return of equity indexes do not correlate with the environmental index. On contrary the financial indicator revenue can be seen as the important factor for developing environmental friendly and sustainable business. On the basis of the resuts it is possible to conclude that there is a slight difference between Czech and Swiss companies as the strength of Spearman's coefficient of Swiss companies is close to medium correlation dependence whilst the coefficient of Czech companies is closer to low correlation dependence. Conclusions (limits, implications etc) Research findings show results in accordance with other worldwide research focused on impact of company environmental and sustainability business approach to their economical performance. Typically there is no measurable influence in short term period but some positive correlations are proven in mid. to long term perspective.

environmental friendly business, sustainability, financial performance, Czech and Swiss companies

CHLEBOVSKÝ, V.; SCHÜLLER, D.

20. 5. 2016

978-80-214-5413-2

Smart and Efficient Economy: Preparation for the Future Innovative Economy (ICEM 2016)

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