Sustainable Practices and Financial Performance: An Empirical Analysis of China's Garment Industry
Principal Investigator(s): View help for Principal Investigator(s) Ming Li, San Francisco State University
Version: View help for Version V1
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Project Citation:
Li, Ming. Sustainable Practices and Financial Performance: An Empirical Analysis of China’s Garment Industry. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-04-30. https://doi.org/10.3886/E201681V1
Project Description
Summary:
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This
study investigates the relationship between environmental sustainability and
financial performance in the garment industry in China, particularly in
provinces hosting major garment industry clusters. Utilizing a general enterprise
model (GEM) and an ordered logistic regression (OLR), the study examines data
from 388 garment companies. The analysis uncovers significant insights:
sustainable resources and infrastructure, among other external factors,
positively affect profitability and sales growth. Conversely, internal
investments in environmentally friendly products (EFP) and green marketing negatively
influence profitability, while government tax credits or subsidies serve as
positive drivers for profit. These insights highlight the complex dynamics of
sustainability practices and their economic implications in the garment sector.
The study contributes to academic discourse and offers practical guidance for
industry stakeholders and policymakers in implementing sustainable practices.
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