Comments: The Relationship Between Pollution Control Record and Financial Indicators Revisited.
The article comments on a study about the relationship of pollution indices to financial indicators in stock investment decisions. The five financial indicators used were profitability, size, total risk, systematic risk, and price/earnings ratio. The study showed that the evidence presented rests on spurious relationships created through one or more intervening variables. An outline on constructing a model, based upon statistical relationships, is also presented. The relationship among size, pollution control and other financial characteristics is illustrated.