Painting the business green through implementation of environment-friendly practices: Is it worth it?

• Main Authors: Hernandez, Mary Lesly A., Ormita, Pamela Denise L., Santos, Tricia U., Simon, Czarina Micaela L.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Sustainable development > Philippines; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9122
• Institution: De La Salle University

Without a doubt, various efforts have been placed into convincing companies all over the world to incorporate practices that are deemed environment-friendly given the alarming breaking issues relating to the environment. Besides the benefits which they will gain qualitatively, businesses would want to determine what is in it for them quantitatively when they employ green practices. This paper seeks to answer just that through the analysis of the stock returns, abnormal returns and cumulative abnormal returns of the study population with the use of the event study methodology. The said methodology resulted to the reflection of the changes in the quantitative measures previously stated after the event period which is the announcement of Department of Environment and Natural Resources list of green companies. The results were further supported by the Wilcoxon Signed Rank test, in order to verify the significance of the effects that the event study methodology have reflected. Results of the study suggested that there were benefits that the companies were able to realize from the announcement of DENR of them being green which was reflected in their stock returns.