THE EFFECT OF ENVIRONMENTAL PERFORMANCE ON FIRM’S PERFORMANCE – EVIDENCE FROM GHANA

Kingsley Appiah, Jianguo Du, Kofi Baah Boamah

Abstract


ABSTRACT

This paper looks at the effect of environmental performance on firm’s performance of mining companies in Ghana. The study looked at total cash cost and capital expenditure as measures of firm’s performance of selected mining company. The study used recent econometric approach: Fully Modified Ordinary Least Square (FMOLS) to find the long run relationship between the environmental performances and firm’s performance. The approach of the study is case study of a selected mining company listed at Ghana Stock Exchange for the study period 2007-2015.

The study findings are that water consumption has a negative and significant impact on the financial performance of mining companies in Ghana. Hence, our study concludes that companies make environmental performance disclosures as means of meeting industrial regulations and policies and also to make the community see that they are doing something to mitigate the negative effect of their activities in the community.


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References


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