Turning Green to Gold in the Construction Industry: Fable or Fact?
Publication: Journal of Construction Engineering and Management
Volume 139, Issue 8
Abstract
Green principles have been increasingly incorporated into planning, design, construction, and maintenance processes in the engineering and construction industry. Along with the growth of the green initiative, going green not only demonstrates corporate social responsibility, but may yield significant economic benefits. This study compares financial performance between green and conventional firms in the engineering and construction industry. A total of 22 sample companies used in this empirical analysis are categorized into two groups—green versus conventional firms—in accordance with Engineering News Record and Newsweek green company lists. Two groups are compared in terms of short-term financial performance, long-term economic value, and market value. The analysis shows that green firms outperform conventional firms on return on equity (17.4 versus 8.2%) and economic value added margin (0.35 versus ). However, the green strategy has not yet been factored into corporate market value. The findings yield important managerial implications for engineering and construction organizations to integrate sustainability into their business operation.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 139 • Issue 8 • August 2013
Pages: 1026 - 1036
Copyright
© 2013 American Society of Civil Engineers.
History
Received: Apr 23, 2012
Accepted: Jan 4, 2013
Published online: Jan 7, 2013
Discussion open until: Jun 7, 2013
Published in print: Aug 1, 2013
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