Economic Themes (2024) 62 (4) 3, 457-483
Anđela Milenković, Bojan Krstić, Marija Jovanović
Abstract: Company performance includes a set of different indicators that quantitatively or qualitatively show the various performance achieved by a company. In addition to the performance through which the economic dimension of business is viewed, it is also necessary to manage the environmental or ecological performance. Effective management of environmental (ecological) performance is significant due to its interconnection with the financial performance of the company. The purpose of this research is to examine the impact of financial performance on environmental (ecological) performance on the example of large, joint-stock company NIS A.D. NOVI SAD for the period from 2013 to 2022. NIS Group is one of the largest vertically integrated companies in Southern Europe in the field of oil and natural gas production, petrochemistry, and energetics. Correlation and regression analysis were used for research purposes. In this paper, financial and ecological indicators were selected, with the aim to examine the impact of financial indicators (return on assets - ROA, return on equity - ROE, net profit margin, and EBITDA margin) on ecological indicators such as: SO2 emissions, CO2 emissions, energy natural productivity, waste disposal rate, productive use of water resources of affected water and indicator of waste water. The results of the regression analysis indicate that the EBITDA margin has a positive effect on the indicator of SO2 emissions, energy natural productivity, and indicator of productive use of water resources, and that there is a negative effect on the indicator of wastewater. Also, there is a negative impact of ROE, ROA and net profit margin on the environmental indicator of CO2 emissions and the waste disposal rate, as well as a negative impact of ROE and net profit margin on the indicator of wastewater.
Keywords: ecological performance; financial performance; sustainability; environment.
DOES FINANCIAL PERFORMANCE AFFECTS ENVIRONMENTAL PERFORMANCE: THE CASE STUDY OF NIS A.D. NOVI SAD
Anđela Milenković, Bojan Krstić, Marija Jovanović
Abstract: Company performance includes a set of different indicators that quantitatively or qualitatively show the various performance achieved by a company. In addition to the performance through which the economic dimension of business is viewed, it is also necessary to manage the environmental or ecological performance. Effective management of environmental (ecological) performance is significant due to its interconnection with the financial performance of the company. The purpose of this research is to examine the impact of financial performance on environmental (ecological) performance on the example of large, joint-stock company NIS A.D. NOVI SAD for the period from 2013 to 2022. NIS Group is one of the largest vertically integrated companies in Southern Europe in the field of oil and natural gas production, petrochemistry, and energetics. Correlation and regression analysis were used for research purposes. In this paper, financial and ecological indicators were selected, with the aim to examine the impact of financial indicators (return on assets - ROA, return on equity - ROE, net profit margin, and EBITDA margin) on ecological indicators such as: SO2 emissions, CO2 emissions, energy natural productivity, waste disposal rate, productive use of water resources of affected water and indicator of waste water. The results of the regression analysis indicate that the EBITDA margin has a positive effect on the indicator of SO2 emissions, energy natural productivity, and indicator of productive use of water resources, and that there is a negative effect on the indicator of wastewater. Also, there is a negative impact of ROE, ROA and net profit margin on the environmental indicator of CO2 emissions and the waste disposal rate, as well as a negative impact of ROE and net profit margin on the indicator of wastewater.
Keywords: ecological performance; financial performance; sustainability; environment.
