Research Article
The Financial Returns of Green Logistics: A PMG-ARDL Study of ROA, ROE, and ROIC in European Firms
(2010-2023)
Bochra Issa*
Issue:
Volume 12, Issue 1, June 2026
Pages:
1-14
Received:
24 November 2025
Accepted:
27 January 2026
Published:
10 August 2026
DOI:
10.11648/j.ijsqa.20261201.11
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Abstract: Green logistics has become a crucial strategy for enhancing environmental sustainability while simultaneously bolstering firms' competitiveness and financial performance. Despite the increasing interest in sustainable logistics, empirical evidence of its long-term financial effects on European firms remains scarce. This study examines the impact of Green Logistics Intensity (GLI), defined as the incorporation of environmentally responsible logistics practices, on the financial performance of firms in Europe. The analysis utilizes a panel dataset comprising 180 industrial, transport, and automotive firms over the period of 2010–2023. Financial performance is assessed using Return on Assets (ROA), Return on Equity (ROE), and Return on Invested Capital (ROIC). To estimate both short-term dynamics and long-term equilibrium relationships while considering firm heterogeneity, this study employs the Pooled Mean Group–Autoregressive Distributed Lag (PMG–ARDL) estimator. The results indicate that the GLI exerts a positive and statistically significant long-term effect on all financial performance indicators. Specifically, a one-unit increase in the GLI corresponds to increases of 0.090 in ROA, 0.210 in ROE, and 0.130 in ROIC (all p < 0.01), with the most pronounced effects observed in the transport sector. Furthermore, the significant error correction terms confirm the presence of a stable long-term relationship between green logistics and financial performance. These findings illustrate that the integration of environmentally responsible logistics practices enhances long-term profitability and value creation, offering important implications for corporate managers and policymakers aiming to promote sustainable and financially resilient business strategies.
Abstract: Green logistics has become a crucial strategy for enhancing environmental sustainability while simultaneously bolstering firms' competitiveness and financial performance. Despite the increasing interest in sustainable logistics, empirical evidence of its long-term financial effects on European firms remains scarce. This study examines the impact of...
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