Title: Corporate environmental performance and market value of intangible assets

Authors: Shu Ling Lin, Feng Chiung Wang

Addresses: Department of Business Management, College of Management, National Taipei University of Technology, No.1, Three Section, Chung Hsiao East Road, Taipei 10608, Taiwan, R.O.C. ' Taiwan Teleservices & Technologies CO., LTD, 609, Five Section, Zhong Hsin Rd., SanZhong, Taipei Hsien, Taiwan, R.O.C.

Abstract: This study explores the relationship and effect between corporate environmental performance and market value of intangible assets in Taiwanese publicly listed manufacturing companies from 1991 to 2001. It further tests the reciprocal and causality relationship between three aspects of the environmental performance (Proxy-EPI, ECI and PF) and market value of intangible assets. The evidence is all unified, and shows the concreteness and stability. This serves to show that Proxy-EPI, ECI and PF are all important key indicators used to evaluate environmental performance. The better a company|s environmental performance (Proxy-EPI), the higher its market value of intangible assets. However, the ECI and PF show conversely. In addition, a significant pre- and post-causality relationship and effect exists between environmental performance and market value of intangible assets.

Keywords: market value; intangible assets; corporate environmental performance; proxy-Ecological Productivity Index; proxy-EPI; environmental capital investment; ECI; penalty fees; Taiwan; manufacturing companies.

DOI: 10.1504/WREMSD.2009.021702

World Review of Entrepreneurship, Management and Sustainable Development, 2009 Vol.5 No.1, pp.72 - 101

Available online: 30 Nov 2008 *

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