Journal of Business Ethics

, Volume 112, Issue 2, pp 353–366

Beyond “Does it Pay to be Green?” A Meta-Analysis of Moderators of the CEP–CFP Relationship

  • Heather R. Dixon-Fowler
  • Daniel J. Slater
  • Jonathan L. Johnson
  • Alan E. Ellstrand
  • Andrea M. Romi

DOI: 10.1007/s10551-012-1268-8

Cite this article as:
Dixon-Fowler, H.R., Slater, D.J., Johnson, J.L. et al. J Bus Ethics (2013) 112: 353. doi:10.1007/s10551-012-1268-8


Review of extant research on the corporate environmental performance (CEP) and corporate financial performance (CFP) link generally demonstrates a positive relationship. However, some arguments and empirical results have demonstrated otherwise. As a result, researchers have called for a contingency approach to this research stream, which moves beyond the basic question “does it pay to be green?” and instead asks “when does it pay to be green?” In answering this call, we provide a meta-analytic review of CEP–CFP literature in which we identify potential moderators to the CEP–CFP relationship including environmental performance type (e.g., reactive vs. proactive performance), firm characteristics (e.g., large vs. small firms), and methodological issues (e.g., self-report measures). By analyzing these contingencies, this study attempts to provide a basis on which to draw conclusions regarding some inconsistencies and debates in the CEP–CFP research. Some of the results of the moderator analysis suggest that small firms benefit from environmental performance as much or more than large firms, US firms seem to benefit more than international counterparts, and environmental performance seems to have the strongest influence on market-measures of financial performance.


Corporate environmental performance Corporate financial performance Environmental sustainability Meta-analysis 

Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  • Heather R. Dixon-Fowler
    • 1
  • Daniel J. Slater
    • 2
  • Jonathan L. Johnson
    • 3
  • Alan E. Ellstrand
    • 4
  • Andrea M. Romi
    • 5
  1. 1.Department of Management, Walker College of BusinessAppalachian State UniversityBooneUSA
  2. 2.McAfee School of BusinessUnion UniversityJacksonUSA
  3. 3.Department of Management, Sam M. Walton College of BusinessUniversity of ArkansasFayettevilleUSA
  4. 4.Department of Management, Sam M. Walton College of BusinessUniversity of ArkansasFayettevilleUSA
  5. 5.Accounting Department, Kelley School of BusinessIndiana UniversityBloomingtonUSA

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