This study aims to clarify the relationship between environmental performance and financial performance by introducing clean technology as the moderating variable. We contest two major theories, natural resource-based view theory and neoclassical theory, to reveal a comprehensive understanding of environmental performance's impact on financial performance. The hypotheses are tested on 111 global oil and gas companies using dynamic panel generalized method of moments (GMM). Our analysis reveals three key findings. First, lower environmental performance leads to lower financial performance confirming the natural resource-based view theory. Second, clean technology has no significant effect on financial performance, arguing the marginal abatement cost. Finally, our results report that clean technology has no impact on increasing financial performance during high waste spills or high emissions. Theoretical and practical implications resulting from the adoption of clean technology to moderate the environmental impact on financial performance are also discussed.
|Number of pages||13|
|Journal||Business Strategy and the Environment|
|Early online date||7 May 2021|
|Publication status||Published - 18 Nov 2021|
Bibliographical noteThis is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in anymedium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.© 2021 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.
FunderThis research acknowledges the financing assistance from Universiti Malaysia Sarawak.
© 2021 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.
- clean technology
- environmental performance
- financial performance
- oil and gas industry
ASJC Scopus subject areas
- Business and International Management
- Geography, Planning and Development
- Strategy and Management
- Management, Monitoring, Policy and Law