Green management and financial performance: a literature review

The purpose of this paper is to carry out a literature review of the quantitative studies that have analyzed the impact of green management on financial performance.

An examination of the literature was undertaken to review the quantitative studies that analyze the influence of environmental management on financial performance. A total of 32 studies were identified, examining the environmental variables used, the financial performance variables, the statistical analyses, and the main findings obtained by these studies.

Results are mixed, but studies where a positive impact of environment on financial performance is obtained are predominant. In addition, the findings show that the set of firms, industries and countries are varied. Some studies use environmental management variables and other works employ environmental performance variables, and regression analysis prevails.

The study does not consider studies that analyze the influence of environmental management on environmental performance. Implications for future research are suggested.

The paper offers interesting implications for managers, pointing out that a real commitment to green management may result in a positive influence on financial performance.

The findings are derived from an exhaustive literature review of quantitative studies that have studied the green management‐financial performance link. In addition, ideas for improving future research in this field are provided.