Environmental and financial performance. Is there a win-win or a win-loss situation? Evidence from the Greek manufacturing

There is a long standing debate regarding the link between environmental and financial performance. To date, this debate results controversial findings, triggering for further research in different industries and countries. The specific study examines the relationship between environmental and financial performance in Greek manufacturing. Environmental performance is measured according to accounting data following the Eco Management and Auditing Scheme guidelines and ISO certification. Return on assets and return on sales ratios are used as indicators of financial performance. Empirical findings suggest that there seems to be a link between these dimensions irrespectively of the particular sector of activity. Contrary to similar studies a "virtuous circle" does not exist, as the avoidance of environmental improving investments is related to a better financial performance. On the other hand, firms with superior financial performance seem to achieve a better environmental performance. At the same time, firm specific and market characteristics significantly affect this relationship. These findings provide evidence that governmental and corporate actions are necessary in order to lead to a more sustainable corporate performance in the long run. (C) 2018 Elsevier Ltd. All rights reserved.