A note on the impact of environmental performance on financial performance

Conventional estimates of the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP) are typically based on simple OLS regression. In this paper, I test whether this relationship holds using median regression analysis that is more robust to the presence of outliers and unobserved firm heterogeneity. Based on panel data for British companies, I find that the relationship between CEP and CFP is stronger when median regression are used.