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Title: Energy efficiency and company performance in Japanese listed companies

Authors: Rayenda Khresna Brahmana; Hiroya Ono

Addresses: Centre for Business, Economics and Finance Forecasting, Universiti Malaysia Sarawak, 94300, Kota Samarahan, Malaysia ' Chikuro Hiroike School of Graduate Studies, 2-1-1 Hikarigaoka, Kashiwa-shi, Chiba-ken, 277-8686, Japan

Abstract: This research empirically investigates the relationship between energy efficiency and company performance for a pooled sample of 177 listed companies in Japan over 2005-2014. We find that energy efficiency plays a significant role in company performance in Japan, thereby debunking the energy efficiency paradox. Our research further indicates that this energy efficiency not only affects the market-based performance (Tobin's Q), but it also significantly impacts the accounting-book performance (return on assets). The findings present significant contributions to both the academic body of knowledge and the industry. The findings can also provide a basis for the Japanese Government to encourage companies to enact more energy efficient practices.

Keywords: energy efficiency; company performance; Tobin's Q; return on asset; ROA; Japan.

DOI: 10.1504/IJETP.2020.103845

International Journal of Energy Technology and Policy, 2020 Vol.16 No.1, pp.24 - 40

Received: 27 Oct 2017
Accepted: 27 Oct 2017

Published online: 15 Nov 2019 *

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