Хохлова Анастасия Ильинична
The Value of Environmental Investments
The analysis attempts to link environmental performance to ﬁnancial performance. We ﬁnd that good environmental performance is positively linked to market valuation of chemical and paper companies in the USA. Environmental performance is diﬃcult to measure objectively. In this research, we use several diﬀerent measures of environmental performance. Three indicators are based on the environmental rating provided by the Corporate Social Responsibility Hub – an independent business sustainability database. The fourth indicator is the amount of legally emitted toxic chemicals published by the Environmental Protection Agency. We conclude that companies with better environmental performance than the average performance in their industry have signiﬁcantly higher values of intangible assets.