Relation Between Environmental Impact and Financial Structure of Cement Industry

Engin Demirel, İlknur Eskin

Abstract


This study aims to investigate financial structure of cement firms, which facing environmental regulations and impacts. In this study financial ratio of 16 cement firms that are listed in Istanbul Stock Exchange analysed for the years 2011-2013. The key concept of this research is related to which debt ratios and financial structure are mainly affected by environmental data at cement firms on an emerging market. We developed two equations in order to analyse the relation between environment and financial structure. We found that there is a significant relation on emission levels while there is no significant relation on carbon dioxide levels with financial ratios. Sales, gross profit margins, current ratios have positive impact on industry emission levels. Moreover, earnings before interest and tax, liquidity ratio, financial leverage ratio and accounts receivable turnover ratios have negative impact on industry emission levels.

Keywords: Cement Industry, Environmental Impact, Financial Ratio, Panel Data Models

JEL Classifications: C23, G30, L61


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