Internationale Zeitschrift für Wirtschafts- und Managementwissenschaften

Financial Performance and Environmental Protection Agency Penalties: Commentary

Abstract

Jorge A. Romero

The impact of U.S. Environmental Protection Agency (EPA) penalties on financial performance has not been explored in detail, and more empirical research in the area is needed. One empirical study looked at the impact of EPA penalties on earnings. They found that higher EPA penalties lead to lower earnings, therefore having an additional negative financial impact on the firm and forcing firms to behave more responsibly in environmental matters.