Page 51 - CITN 2017 Journal

influence share price behaviour they need to improve their financial performance
indicators as measured by the book value per share and earnings per share. The inverse
relationship between the share market price and environmental performance score means
that companies most take caution with proactive environmental strategy as it sends
negative signals to investors which cause the share prices of such companies to fall.
However, for companies in environmentally sensitive industries; the inclusion of industry
specific factors shows that there may be positive effects to active environmental strategy.

The study envisages that the attention on environmental issues will continually increase,
and new developments in environmental studies will expand available data and improve
environmental performance information. The study recommends that a unified system
with definition and consistent and reliable measures of corporate environmental
performance be created. This will enable users (Stakeholders) of such information
particularly investors make well informed decisions.

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