The Impact of Forest Certification on Firm Financial Performance in Canada and the U.S.

Kais Ben Hmida Bouslah, Bouchra M’Zali, Marie-France Turcotte, Maher Kooli

Research output: Contribution to journalArticlepeer-review

27 Citations (Scopus)


The purpose of this article is to examine empirically the impact of environmental certification on firm financial performance (FP). The main question is whether there is a ‘‘green premium’’ for certified firms, and, if so, for what kind of certification. We analyze the short-run and the long-run stock price performance using an event-study methodology on a sample of Canadian and U.S. firms. The results of short-run event abnormal returns indicate that forest certification does not have any significant impact on firm FP regardless of the certification system carried out by firms. Unlike the short-run results, the long-run post-event abnormal returns suggest that forest certification has, on average, a negative impact on firm FP. However, the impact of forest certification on firm FP depends on who grants the certification, since only industry-led certification (Sustainable Forestry Initiative, Canadian Standards Association and ISO14001are penalized by financial markets, whereas non-governmental organizations–led Forest Stewardship Council certification is not.
Original languageEnglish
Pages (from-to)551-572
JournalJournal of Business Ethics
Issue number4
Publication statusPublished - Nov 2010


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