Master Flashcards
(194 cards)
1
Q
What are the primary pollutants?
A
Oxides of nitrogen (NOx)
Hydrocarbons (HC)
Particulate matter (PM)
Particle number (PN)
Carbon monoxide (CO)
CO2 emissions
2
Q
What is vehicle emissions standards?
A
They function as upper limits of acceptable pollutant emissions from new vehicles sold at a given time in a given market.
3
Q
When and where was the first emission standard introduced and what did it focus on?
A
First introduced in 1965 in US, as an adaptation of the Clean Air Act of 1963. Focused on hydrocarbons (HC) and carbon monoxide (CO) from light-duty vehicles.
4
Q
When was the first European emission directive published, and what did it focus on?
A
Published in 1970 and focused on air pollution (hydrocarbons and carbon monoxide emissions)
5
Q
What is European emission standards?
A
It is regulations that the European Union constructs to limit the amount of pollutants
6
Q
When was the first European emission standards introduced and how are they referred to?
A
Emission standards were introduced in 1992 and are referred to as Euro x. Each standard leads to stricter emission limits.
7
Q
What is “Dieselgate”?
A
“Dieselgate” involved Volkswagen and their vehicles who did not meet the emission levels required. Emissions were 40 times higher than the allowed limits under non-lab environments.
8
Q
What does the introduction of Euro 7 implement, and how will it change Euro 6?
A
The new Euro 7 emission standard will lead to lowering NOx emissions by 35 %, particle emissions from tailpipe by 13 % and particles from brakes by 27 % compared to Euro 6.
9
Q
What are the main source of particle emissions from road transport in the future?
A
It is predicted that the main source of particle emissions will stem from brakes and tire emissions. Euro 7 will regulate this.
10
Q
What is the primary focus of transportation emissions regulations as of today?
A
The primary focus of transportation emissions regulations is centered around reducing the emissions of greenhouse gases. The main reason being the increasing emphasis on global warming and climate change.
11
Q
What industry is most reliant on fossil fuels?
A
The transportation industry and accounts for almost 37 % of the CO2 emissions in 2021.
12
Q
Who reached a voluntary agreement about vehicles CO2 emissions together, and what was the commitment?
A
The Association of European Automobile Manufacturers (ACEA) and European Comission. The commitment was about the automotive manufacturers agreeing to reduce their average CO2 emissions from new passenger vehicles down to 140 g/km from 1995 to 2008/09.
13
Q
What happend with the voluntary agreement between ACEA and EC?
A
Automotive manufacturers failed to reach the limit of 140 g/km. This resulted in the first legally binding target applied in 2009 being Regulation (EC) No 443/2009, targeting an average CO2 emissions of 130 g CO2/km from the fleet of new passenger vehicles sold in the European Union by 2015.
14
Q
What does the metaphor of Porter & van der Linde 1995 say, and how does it apply to the voluntary agreement?
A
“”$10 bills will never be found on the ground because someone would have already picked them up”. In this view, if complying with environmental regulation can be profitable, in the sense that a company can more than offset the cost of compliance, then why is such regulation necessary?”.
This applies to the voluntary agreement, because if it was more profitable to reduce the average CO2 emission, then the automotive manufacturers would have complied with the voluntary agreement, however, they did not.
15
Q
What was the results of the first binding regulation Regulation (EC) No 443/2009?
A
Regulation (EC) No 443/2009 was a success, leading to a reduction from 146 g CO2/km in 2009 to 127 g CO2/km in 2015, which is below the target of 130 g CO2/km.
16
Q
What does Regulation (EU) No 333/2014 do?
A
Implements a new target averaging 95 g CO2/km from the fleet of new passenger vehicles sold in the European Union by 2020. Later postponed until 2021.
17
Q
How is it possible for the automotive manufacturers to achieve the target of 95 g CO2/km?
A
A significant increase in the efficiency of the conventional internal combustion engine and investments into new technologies such as plug-in electric vehicles, would have to take place between 2015 and 2020/21.
18
Q
What is the Regulation (EU) 2019/631 about?
A
The EP and EC implemented changes to the 2009 standards. The new targets will be percentage targets instead of absolute targets. The percentage targets indicators shall be reduced by 15 % until 2025, and by 37,5 % until 2030 compared to 2021 levels, which corresponds to 59,4 g CO2/km measured in New European Driving Cycle (NEDC) values.
19
Q
How will automotive manufacturers be able to comply with Regulation (EU) 2019/631?
A
By producing and selling low-emission and zero-emission vehicles. Such vehicles are characterized by being mostly battery electric vehicles.
20
Q
What characterizes a low- and zero-emission vehicle?
A
A vehicle is considered as a low-emission vehicle if the vehicle produces less than 51 g CO2/km.
21
Q
What is the target values for low- and zero-emission vehicles with Regulation (EU) 2019/631?
A
15 % of the new vehicle fleet in 2025 and 35 % in 2030.
22
Q
What is manufacturers pools?
A
Manufacturers pools function by manufacturers being able to jointly meet average CO2 emissions targets with a competitor.
23
Q
How will the calculation of vehicles below 50 g CO2/km be calculated between 2020 and 2023? (Super-credits)
A
Each vehicle below 50 g CO2/km will count as 2 passenger vehicles in 2020, 1,67 passenger vehicle in 2021, 1,33 passenger vehicle in 2022 and 1 passenger vehicle from 2023 and onwards.
24
Q
What is the incentive of Super-credits for the automotive manufacturers?
A
Super-credits will give automotive manufacturers incentives to produce low-emission and zero-emission vehicles to reap the benefits from super-credits and to easier comply with Regulation (EU) 2019/631.
25
Why is it important for the automotive manufacturers to sell low- and zero-emission vehicles?
According to Fritz et al. (2019) no manufacturer is able to meet the 2030 fleet average CO2 emission target without selling low-emission and zero-emission vehicles.
26
How much of the sales coming from electric vehicles are required for the automotive manufacturers to be complient with the regulations in 2030?
Range from 23 % to 30 % in 2030. If automotive manufacturers decides to only rely on plug-in hybrid vehicles a range from 37 % to 46 % is needed.
27
From what year can the automotive manufacturers be fined for not complying with the regulations?
From the beginning Regulation (EC) No 443/2009 in 2012.
28
What is the fine structure between 2012 and 2018?
Between 2012 and 2018 the following structure applies: 5 €/g CO2/km for the first g/km above the limit. 15 €/g CO2/km for the second g/km above the limit. 25 €/g CO2/km for the second g/km above the limit and lastly 95 €/g CO2/km for each subsequent g/km above the limit.
29
What is the fine structure from 2019 and onwards?
From 2019 and onwards the cost will be constant at 95 €/g CO2/km for every g/km above the limit.
30
What is the six purposes of properly crafted environmental regulations?
1. Regulations help companies be aware of likely resource inefficiencies and potential technological improvements.
2. Regulations that focus on information gathering have the ability to achieve major benefits by raising corporate awareness, which can be in the form of annual reports.
3. Uncertainty about investments to address the environment will be reduced.
4. Regulation has the benefit of creating pressure that motivates innovation and progress.
5. Regulations levels the playing field, the reason being that regulations ensures that one company cannot gain a competitive position by avoiding environmental investments.
6. Regulation is necessary when efforts to balance out negative impacts fall short.
31
What are the two broad perspectives of innovation as a response to environmental regulation?
1. Companies evolve and gets smarter about how to deal with pollution at the time it occurs. Such innovation reduces the cost of compliance, but changes nothing else.
2. Innovation can affect environmental impacts while at the same time improving the affected product or related processes. Product offsets occur when environmental regulations create better performing products.
Porter van der Linde (1995) claims that the second type of innovation is what actually increases competitiveness within industries regarding environmental regulations.
32
How is the average CO2 emissions of the automotive manufacturers calculated?
New European Driving Cycle (NEDC) has been used since the beginning of Regulation (EC) No 443/2009.
World-wide harmonized Light-duty Test Procedure (WLTP) has since the implementation of Regulation (EU) 2017/1152 in 2017 been phased in during the period 2017 to 2020. From 2021 and onwards only the model of WLTP is used.
33
Where does the NEDC measurement takes place, and what is some of the flaws with the way of measuring CO2 emissions?
The measurement of NEDC takes place in a laboratory setting and consists of smooth accelerations and decelerations which is not representative for modern driving patterns. Furthermore, the test protocol overlooks important real-world conditions such as additional weight, number of passengers, use of air conditioning, realistic gear shifting, cold starts, traffic signals
34
According to Rahman et al. (2021) what would increase NOx and CO emissions by 3 times?
Aggressive driving behavior increased NOx and CO emissions by three times compared with normal driving behavior.
35
According to Paltsey et al. (2018) how big is the deviation in 2001, 2013 and estimated to be in 2020?
the deviation grew from 8 % in 2001 to 31 % in 2013 and were estimated to rise above 50 % by 2020.
36
How is the new WLTP values converted into NEDC values by the automotive manufacturers?
the measurement of WLTP CO2 emissions is converted into the corresponding NEDC values using the CO2MPAS model until 2020.
37
During the period between 2001 to 2007 and 2007 to 2013, what was the most substantial policy impact on new passenger vehicles CO2 emissions?
The European Union CO2 emissions regulations introduced in 2009. The best performers in the period 2001 to 2007 were outperformed by the worst performers in 2007 to 2013.
38
What is one common argument and opinion among economists, politician and managers about environmental protection?
Such protection would lead to lowering profit and harming competitiveness globally. Concluding that managers cannot achieve both environmental and competitive improvements at the same time.
39
How is resourced controlled by a company viewed within the resource-based view?
Resources are viewed as heterogeneous and immobile leading to the possibility of a sustained competitive advantage against competitors.
40
What does a sustained competitive advantage indicate?
It indicates that the company is in possession of one or more resources characterized by being valuable, rare, inimitable, and supported by tacit skills or socially complex organizational processes. (VRIO)
41
What would be the contrast to the resource-based view?
Companies within an industry to possess identical strategically resources, leading companies to pursue the same strategies. Furthermore, should heterogeneity develop, competitors would be fast to adapt and develop similar resources because of the assumption of strategic resources being highly mobile, leading to a short and unsustained competitive advantage.
42
How did Hart (1995) evolve the resource-based theory?
Looking at companies' relationship to the surrounding natural environment. The developed theory is about three interrelated strategies being pollution prevention, product stewardship and sustainable development. This became the Natural resource-based view (NRBV)
43
What are the three strategies developed by Hart (1995) as an addition to the RBV also referred to?
The proactive environmental strategies. The three strategies function as the natural addition to the resource-based view.
44
What did companies realize about pollution prevention?
it is significantly cheaper to prevent pollution in production processes before it happens, than it is to clean it up at the end, also referred to as “end of the pipe”.
45
What is one limitation of pollution prevention?
further investments, such as capital investments, is required to realize smaller and smaller reductions leading to diminishing returns, lowering overall profitability.
46
What is product stewardship about?
incorporating sustainability aspects into product design, and as a result reduce the negative environmental impacts of companies’ products while still meeting the desired needs from customers.
47
What is the life cycle analysis, and which of the three natural strategies is it linked to?
Product stewardship is linked towards life cycle analysis, which assesses the environmental burden a product represents throughout its entire useable life.
48
When is the product stewardship expected to pay of?
the product stewardship strategy is expected to pay-off in the medium-term, depending upon the investment intensity and product development within the industry. A well performed product stewardship strategy should achieve growth by positioning the company to reap market share within established product markets, and potentially positioning the company as a first-mover and market leader in new product markets.
49
What is sustainable development about?
It is about understanding that companies should not only fulfil the wants and needs of existing markets, but also the needs of emerging markets leading to development and adaptation of new technologies and products. In particular, the pressure for sustainable development has significant implications for companies, especially large multinational corporations.
50
What does it require to pursue an effective sustainable development strategy?
It requires the vision of the company to be unambiguous, public, and widely understood, resulting in it being codified in nature.
51
What does the natural addition of the RBV contribute with?
It contributes with the potential to increase profitability and growth by lowering costs, differentiating products, and raising entry barriers through first-mover reputation building, in the form of pollution prevention and product stewardship strategies. Those strategies focus on improvements to current products and processes. The vision of sustainable development should help companies positioning themselves for future long-term markets.
52
What is one of the dangers of shaping companies' resources with a long-term perspective?
If it should happen that there is a transition within the industry, previously critical resources may become of marginal value.
53
Separation of sustainable development in two distinct areas, which?
Clean technology strategy and base of the pyramid.
54
What is clean technology strategies about?
It tries to overcome how companies build new competencies and position themselves to achieve competitive advantage as their industry evolves. To succeed with bringing clean technologies to market, companies would have to develop abilities to deal with knowledge being uncertain, constantly evolving, and dynamically complex. Clean technologies may eventually end up cannibalizing parts of the existing core business.
55
What did the perspective of dynamic capabilities developed by Teece et al. (1997) give to the understanding?
how companies build and establish new resources and capabilities in rapidly changing markets.
56
Why is dynamic capabilities particularly appropriate for sustainability transitions?
Because of rapid changes in policy, regulations, technology, and customer expectations.
57
What would happen if two companies faces related external environments?
Each company can develop related but not identical capabilities. The reason being that capabilities themselves are dependent on the companies already existing structures, strategies, and resources, which ultimately will differ from company to company.
58
What is sustainability dynamic capabilities?
Specific subset of capabilities which include adaptivity and proactivity behaviors that differs across moderately and highly dynamic contexts.
59
What does sustainability dynamic capabilities enable an organization to do?
It enables an organization to modify its resource base to overcome challenges from sustainability strategies by balancing business objectives and environmental externalities.
60
How does global automotive manufacturers identify and select dynamic capabilities?
Automotive manufacturers dynamic capabilities differ for each manufacturer. They try to identify and select by integrating and reconfiguring internal and external organizational skills, resources and functional competences, to best accommodate changes within the industry environment.
61
Name a source of an intangible market advantage
Reputation has the ability to function as a source of market advantage in the form of an intangible resource. Once companies have gained positive environmental reputation, it will function as a valuable inimitable resource that is difficult to change if sustained.
62
Contribution towards competitive advantage can come from
The development of resources and capabilities within product, process and operational efficiencies
63
What is said about companies benefitting from a low CO2 emission profile?
They are flexible and well prepared if new or stricter regulations should occur within their industry.
64
Where does environmentally sustainable development lie between?
The social and business research
65
What is social research?
Social research is conducted and motivated because of developments and changes within society. Environmentally sustainable development will affect how we will behave as human being in society.
66
What is business research?
Experiments and data collected either by quantitative or qualitative research, with a business perspective.
67
How is business research used in the thesis?
By focusing of sustainable development by looking at environmental performance with regard to financial performance, moving towards a more business research-oriented approach to methodology.
68
How is the thesis based on archival and documentary research?
It comes in the form of organisational sources consisting of official reports such as annual reports, company results, and financial highlights.
69
Explanatory and evaluative research
Explanatory function to investigate a situation or problem, with the intention of being able to explain relationships between variables. Evaluative research function to make comparisons between events, situations, groups, or periods. Making comparisons allows for evaluating how well or bad something works. Combining those into a combined study approach.
70
The deductive approach
using data to test hypothesis developed from existing theory from literature. Applying the deductive approach is in line with conducting explanatory research.
71
What type of data does the thesis make use of?
Longitudinal secondary quantitative data. secondary quantitative data is often publicly available and permanently stored making validation and replicability possible.
72
What is one disadvantage of using secondary data?
Disadvantages of using secondary data is the way data is used afterwards, is different from what the purpose of the data original was intended.
73
What is ment with longitudinal data?
Data collected for multiple years. The thesis makes use of 11 years of data.
74
What is one of the advantages of using longitudinal research?
One of the advantages is the possibility to investigate changes and developments over time.
75
What should the researcher be aware of when using longitudinal data?
measurement bias should be of great concern. Detection of measurement bias is dependent on the researcher being aware of changes in the way data are produced, measured, or collected.
76
What can you tell about the sampling methodology?
Make use of the non-probability sampling approach. The sample is selected based on judgemental subjectivity. The sampling approach is furthermore heterogeneous, the reason being that each automotive manufacturer possesses unique characteristics.
77
What type of unique characteristics does each automotive manufacturer posses?
Automotive manufacturers differ in terms of company size, product offerings and market/customer focus, geographic location, ultimately leading to differences in business strategies.
78
What does M1 refers to?
vehicles containing no more than eight passenger seats and with a weight not allowed to exceed 3.500 kg. The M1 category contains vehicle types such as passenger vehicles, minivans, and SUVs.
79
How did you collect the empirical data representing financial performance?
It has been collected from Orbis. Orbis is the most powerful comparable data resource covering data from private companies. Orbis lacked data regarding Volvo Car Group annual reports for the years 2012, and 2013. These years have been added to the data set manually.
80
Why do you think that the sample of automotive manufacturers are right?
in 2012 the sample of automotive manufacturers accounted for 80,5 % of the market share of new sold vehicles in the European Union. By 2022 the combined market share of the companies had increased by 12,6 % to 93,1 %, indicating that the sample of automotive manufacturers contains the vast majority of significant competitors within the market.
81
What are the three companies that have been affected by decreasing market share?
Ford, Nissan, and Volkswagen Group.
82
What type of search engine tools did you use throughout the search for literature?
SDU Library and Google Scholar
83
What is the Boolean Logic?
Combining two or more words to narrow down the literature. One example is the following “Environmental performance AND financial performance AND automotive industry/manufacturers”.
84
What other type of search method have you used beside the Boolean logic?
When literature was found by the Boolean logic, I recognized repeated citations by several authors and looked into those as well.
85
What type of literature is used in the literature review?
The literature review is based exclusively on peer-reviewed articles with the exception of regulations provided by the European Parliament and of the Council. The reason for this being that peer-reviewed literature contributes to sources viewed as credible.
86
What are the three different methodological approaches towards analysing the relationship between environmental and financial performance according to Busch and Hoffman (2011)?
1. Event studies
2. Portfolio analyses
3. Econometric approaches
87
What is event studies?
Event studies investigate the effect new information, regarding a specific event, has on the development of corporations’ mean stock returns.
88
When is event studies especially applicable?
when analysing the impact of mergers and acquisitions but is also increasingly used to analyse environmental events.
89
What is one of the disadvantages to event studies?
one disadvantage is that assumptions regarding the newness of the information to the market must be applied. Meaning that assumptions about investors lacking information and not expecting individual companies to be affected by the event. Regarding environmental events, like implementation of stricter regulations, such information is rarely totally new to the investors and would have been priced into the stock prior to the announcement of stricter regulations. (Euro 7 being announced but first being implemented in 2025).
90
What is portfolio studies?
Portfolio studies investigate the risk-adjusted returns of stock portfolios, by combining multiple companies into two portfolios. With the focus of environmental performance the portfolios should consist of one portfolio being represented by companies with a high environmental performance, and the other being represented by companies with a low environmental performance.
91
What is one of the advantages of portfolio studies?
One advantage for portfolio analysis against event studies is that long-term effects can be observed.
92
What is one of the disadvantages of portfolio studies?
One disadvantage is that the results are exclusively examined from an investor perspective and lacks the individual stock market influence from each company. A study investigating accounting-based relationships may result in misleading conclusions.
93
What is econometric analyses?
look into the long-term relationship between environmental performance and financial performance. In econometric analyses most studies make use of accounting- based indicators for financial performance such as Tobin’s Q, ROA, ROS, ROE etc. Environmental performance indicators consist of a variety of measures, such as pollution and emissions
94
What is one of the advantages of econometric analyses?
One advantage of using econometric analyses is the possibility to investigate causal relationships and the effectiveness of environmental performance activities on the long-term profitability of companies.
95
What is one of the disadvantages of econometric analyses?
One disadvantage is that when comparing environmental performance and financial performance between companies, researchers must make sure that what is being measured is indeed comparable with each other, to increase the validity of the study.
96
How is the environmental performance standardized across the companies within the thesis?
The measurement of sustainability/environmental performance applied in the thesis is standardized across companies by the NEDC and WLTP procedure, making it comparable between companies.
97
Which one of the three different methodological approaches towards analysing the relationship between environmental and financial performance does the thesis apply?
The thesis makes use of the econometric analyses approach, because accounting-based indicators for financial performance is applied. Furthermore, it investigates the long-term relationship between environmental performance and financial performance. As a result, the thesis consists of panel data that makes it possible to investigate companies’ performance over time by analysing observations across several consecutive years.
98
What is a omitted variable?
Omitted variable bias occurs when a statistical model fails to include one or more relevant variables. In other words, it means that you left out an important factor in your analysis.
99
How many companies does the thesis consists of? List them
The thesis consists of 12 companies, being:
* Audi
* BMW
* Ford
* Hyundai
* Kia
* Mercedes Benz
* Nissan
* Renault Group
* PSA / Stellantis
* Toyota
* Volkswagen Group
* Volvo
100
How many times are each company observed? And how large is the sample size/observations?
each company is observed for a total of 11 time periods leading to a total of 132 observations.
101
What is one of the advantages of panel data?
Panel data has the advantage of giving more informative data, more variability, less collinearity among the variables, more degrees of freedom, and more efficiency than the time-series and cross-section studies.
102
When is the payoff of using panel data achieved?
when using data over longer time periods being five years, ten years or longer. If panel data is only based on a few years, then changes from one year to the next will have the chance of being too noisy and too short term to be really useful. This is one of the reasons why i don't use it for hypothesis 2 and 3.
103
Why do you use non-time-lagged variables?
According to Wagner et al. (2002) environmental performance of a company in one year is directly linked to its economic performance in the same year (Wagner et al., 2002). This is applicable to the thesis because environmental performance is calculated as the average CO2 emissions from the automotive manufacturer’s new fleet sold in a specific year, which is directly linked to the automotive manufacturer’s financial performance of the same year.
104
How do you calculate currencies for Volvo?
currencies are calculated towards euros by exchange rates at the last business day of the corresponding year. Exchange rates are collected from The European Central Bank. Can be seen in appendix 1.
105
Which accounting-based profitability ratios are used?
ROA, ROE, ROS, and ROCE.
106
How do you calculate ROA, and what does it tell us?
Return on assets (ROA) is calculated by dividing operating income (EBIT) with total assets. ROA indicates how effective a company is to produce profit from its investments.
107
How do you calculate ROE, and what does it tell us?
Return on equity (ROE) is calculated by dividing net income with shareholders equity. ROE indicates how effective the company is to generate cash internally.
108
How do you calculate ROS, and what does it tell us?
Return on sales (ROS) is calculated by dividing profit (loss) before tax (PBT) with operating revenue. ROS indicates how effectively the company is to achieve the maximum sales possible whilst at the same time keeping costs low, generating profits from its sales revenue.
109
How do you calculate ROCE, and what does it tell us?
Return on capital employed (ROCE) is calculated by dividing earnings before interest and taxation (EBIT) with capital employed. ROCE indicates how effective the company is at producing profit from its employed capital.
110
What is the dependent variable(s) of the thesis?
Financial measurement. (ROA, ROE, ROS and ROCE)
111
What is the independent variable(s)?
the independent variable is represented by the automotive manufacturers average fleet CO2 emissions from new vehicles sold each year.
112
Why do you use this exact independent variable, and not other?
the thesis makes use of a unique independent variable, giving the opportunity to enrich the literature with a new perspective to the relationship between environmental performance and financial performance.
113
How is the unit of average fleet CO2 emissions measured?
is measured as g CO2/km.
114
What are the main changes between NEDC-WLTP based on?
It is based on three main elements being first, a longer and more dynamic driving cycle. Second, a higher vehicle test mass. Third, a lower engine temperature at test start.
115
What is the conversion factor between NEDC-WLTP that you used in the thesis, and why did you make that choice?
In 2014 Mock et al. expected that the conversion factor from NEDC to WLTP would be within the range of 5 to 8 %. However, a publication from The European Environment Agency published 18 March 2024 finds that the average fleet- wide target of 95 g CO2/km for new passenger vehicles based on the NEDC test procedure is equivalent to 115 g CO2/km when using the WLTP test procedure. This result in a conversion factor of 21,16 %. This conversion factor has been used to convert the WLTP measures for the years 2021 and 2022 back to NEDC values.
116
Why is companies forced to take action on their environmental performance?
The focus of CO2 emissions and global warming is increasingly becoming an area of interest for key stakeholders including customers, governments, and investors. If companies wish to be competitive within their industry, they have to take action.
117
Who is it that has decision power against the European automotive manufacturers and why?
the European Parliament, have major decision-making power regarding regulations.
118
How should control variables be selected?
Selection of control variables should be based upon a combination of knowledge, judgment, and economic theory. The thesis adopts company specific factors as control variables, that has been widely used in prior literature on identical financial performance measurements.
119
What type of control variables are used in the thesis?
Company size, leverage and R&D. Table 2 contains prior literature and their control variables.
120
How is company measured, and why is it implemented?
Company size is measured by taking the natural log of firm total assets. Company size is controlled for the reason that larger companies tend to be more profitable than smaller companies. In addition, larger companies may enjoy greater access to key resources and increased possibilities to develop capabilities.
121
How is leverage measured, and why is it implemented?
Leverage is measured by total liabilities divided by total shareholders’ equity. Leverage is controlled for because high levels of leverage has the possibility of increasing the chance of bankruptcy, resulting in worse banking and supplier conditions.
122
How is R&D measured, and why is it implemented?
Research and development (R&D) is measured as R&D expenses divided by total sales. The effects of R&D on financial performance can be significantly negative, especially in the short run. A large portion of the R&D cost is acknowledged from the automotive manufacturers to be derived because of the need for compliance towards average CO2 emission regulations.
123
What type of analysis are used for hypothesis 1 and 4?
panel data regression analysis will be conducted to analyse if a decrease in average vehicle CO2 emissions, is positively related to the corporate financial performance measurements of automotive manufacturers.
124
What type of analysis is used for hypothesis 2 and 3?
For hypotheses 2 and 3 descriptive statistics will be conducted to analyse if the implementation of stricter environmental regulations, is positively related to the corporate financial performance of automotive manufacturers when periods prior, during and after the implementation of a new regulation is investigated.
125
What type of analysis is used for hypothesis 5?
For hypotheses 5 descriptive statistics will be conducted together with an analysis of scatterplot consisting of accumulated financial measurements and accumulated average CO2 emissions of automotive manufacturers.
126
How many dimensions does panel data contain, and what are those?
Panel data observations contain at least two dimensions being a cross-sectional dimension and a time series dimension.
127
Do you use a balanced or unbalanced panel data model?
The panel data model is defined as being balanced because all the variables are observed for each company at each time period, leading to no missing values.
128
Which two models can be used in panel data regression analysis, and how do you decide which one to use?
Panel data regression can be conducted by using either a fixed effects model or a random effect model. The choice of model will be selected by applying the Hausman specification test. A p-value below 0.05 indicates that the fixed effects model is preferred for the analysis. A p-value above 0.05 indicates that the random effects model is preferred for the analysis.
129
What are the general assumptions that has to be met when conduction regression analysis?
when conducting regression analysis the following assumptions has to be met:
Linearity
Homoskedasticity
Multicollinearity
Normality.
130
What is linearity and how is it checked?
Linearity is the degree to which a change in the dependent variable is related to the change in the independent variables. If this is the case, then the relationship between the dependent and the independent variables is said to be linear. This assumption is checked by performing residuals vs fitted plots.
131
What is homoskedasticity and how is it checked?
Homoskedasticity is about the variance of the error term not being dependent on the independent variables. Otherwise, the error terms are identified as being heteroskedastic. This assumption is checked by performing Breusch-Pagan test. Values below lead to the conclusion that heteroscedasticity exists, while values above lead to the opposite conclusion being that homoskedasticity exists.
132
What will happen if the homoskedasticity is violated?
If the assumption of homoskedasticity is violated, inefficient estimates together with incorrect conclusions regarding the relationship between variables is possible to occur. If the homoskedasticity assumption is violated the simplest thing is to use the heteroskedasticity-robust-standard errors.
133
When is heteroskedasticity-robust-standard errors used?
When the assumption of homoskedasticity is violated
134
What is collinearity or multicollinearity and how is it checked?
Collinearity or multicollinearity is covering the size of correlation between two or more independent variables. The simplest method is to use the correlation coefficients of the data. The size of the correlation should not be either missing or be too high. this assumption is checked by performing the variance inflation factor (VIF) on the independent variables. High collinearity is indicated by the VIF value being 10 or above.
135
What is normality and how is it checked?
Normality is about the data values for each variable having the characteristic of being normally distributed. This is achieved when the variables are clustered around the mean of the variable in a symmetrical pattern formed as a bell-shaped distribution within a histogram. this assumption is checked by performing Kolmogorov-Smirnov test. A test score below 0.05 indicates that the data are not normally distributed. If instead the data are above 0.05 the data is considered to be normally distributed. Furthermore, Q-Q plots for the residuals of each dependent variable are produced to get a visual presentation.
136
What are the specific assumptions for the fixed effect model?
First, the error term should have conditional mean zero. Second, values of independent variables and error terms are independent and identically distributed draws. Third, large outliers should be excluded if possible.
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What is error terms and how is it checked?
An error term in statistics is a value which represents how observed data differs from actual population data. The assumptions of error terms having conditional mean zero and independent and identically distributed draws is checked by performing Durbin-Watson statistics also known as autocorrelation. The values of Durbin-Watson statistic ranges from 0 to 4. A value towards zero indicates positive autocorrelation, whereas a value towards 4 indicates negative autocorrelation. A value of 2 indicates no autocorrelation. If autocorrelation are present the results of the regression analysis are less likely to be reliable.
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How do you check for large outliers?
To check for large outliers, boxplots have been conducted for each dependent variable.
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What do you do, if some of the underlying assumptions are not met?
it is common practice to rely on robust standard errors, with the aim of ensuring valid statistical inference.
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Why is it a good idea to also look at the median when conducting descriptive statistics, instead of only the mean?
The value of the mean can be heavily influenced by extreme values within the data sample. If this is the case, the mean tends to move towards either side depending on the values. If this is the case the mean is less representative of the central tendency. For this reason, the median is included, as one of the advantages of the median is that it will not be affected by extreme values within the sample data
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What does the standard deviation tell you?
The standard deviation give an indication of the spread around the mean within the sample data.
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What is the mean, median and SD used to in the thesis?
The mean, median and standard deviation is applied to answer how the dependent variables, independent variable and R&D changes over time.
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What is the result of the checked assumptions for hypothesis 1?
With regard to linearity, it can be concluded that the values are scattered around the 0 line, showing no signs of a pattern.
Breusch-Pagan test is applied to test the assumption of homoskedasticity. Results indicate values for ROA, ROE and ROCE being below 0.05 indicating that the sample data is heteroskedastic. ROS is well above the threshold of 0.05 showing homoskedasticity.
Results indicates that multicollinearity is not present, as the values are well below 10.
Kolmogorov- Smirnov test indicate that the residuals of the dependent variables all are normally distributed by being well above 0.05. Q-Q plots confirm the Kolmogorov-Smirnov test.
Durbin-Watson statistics indicate no autocorrelation, as the values of the residuals are close to 2.
Outliers have been identified for all the dependent variables. Despite the undesired situation of having outliers, these outliers are kept as they represent a condition for a specific company at that point in time, indicating a natural variation of the sample.
Because the assumption of homoskedasticity is not achieved, robust standard errors are applied with the aim of ensuring valid statistical inference.
The Hausman test indicates very low p-values, resulting in the fixed effects model to be preferred for the analysis.
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What are the results of the analysis for hypothesis 1?
All the estimated coefficients are negative indicating that an increase of one unit in average CO2 emissions, company size, leverage or R&D all have a negative impact on all of the dependent variables with company size, leverage and R&D being statistically significant. Average CO2 emissions are not statistically significant.
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What is the conclusion from hypothesis 1?
If an increase in average CO2 emissions leads to a decrease in financial measurements, the opposite should hold as well. Therefore, a decrease in average CO2 emission should lead to an increase in financial measurements. However, based on the analysis it cannot be concluded with statistical significance that a decrease in environmental performance, measured by average vehicle CO2 emissions, is positively related to the corporate financial performance of automotive manufacturers.
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How is the R2 value for hypothesis 1?
The model obtains an 𝑅2 value between 0.244 and 0.294 which, according to Gallego-Álvarez et al., (2015), should be seen as high.
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What does R2 indicate, and what does it tell?
The explanatory power of each model is indicated by 𝑅2. A 𝑅2 value close to 1 indicates that the variables are good at predicting the dependent variable, while a 𝑅! value close to 0 indicates that the variable is bad at predicting the dependent variable.
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Is it possible to increase R2?
Within multiple regression it would not be a problem to increase the 𝑅! value, just add additional control variables. Therefore, adding additional variables does not necessarily result in an improvement to the fit of the model, and result in an inflated estimate of the data.
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What is one way to avoid overestimating the impact of additional variables in R2?
A simple way to avoid overestimating the impact of additional variables is to use the adjusted 𝑅2.
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What R2 values did Gallego-Alvarez et al. (2015 obtain, and what about Hart and Ahuja (1996)?
Gallego- Álvarez et al. (2015) obtained 𝑅2 values of 0.2641 and 0.2669 and argued that their values where relatively high when comparing the values with prior studies focusing on reduction of GHG emissions like Hart and Ahuja (1996) and others having reported 𝑅2 values as low as 0.19, 0.14, 0.16 and 0.18.
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Why dont you use the adjusted R2 values, when arguing that it is more accurate?
I report the R2 values to be able to make comparisons with the explanatory power between different studies.
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What is the result of the checked assumptions for hypothesis 4?
With regard to linearity, it can be concluded that the values are scattered around the 0 line, showing no signs of a pattern.
Breusch-Pagan test results indicate values for ROA, ROE and ROCE being below 0.05 indicating that the sample data is heteroskedastic. ROS is well above the threshold of 0.05 showing homoskedasticity.
VIF results indicate that multicollinearity is not present, as the values are well below 10.
Kolmogorov-Smirnov test indicate that the residuals of the dependent variables all are normally distributed by being well above 0.05. Q-Q plots confirm the Kolmogorov-Smirnov test.
Durbin-Watson statistics indicate a slight positive autocorrelation, as the values of the residuals are between 1.2-1.35.
Outliers have been identified for all the dependent variables. Outliers are kept as they represent a condition for a specific company at that point in time, indicating a natural variation of the sample.
Because the assumption of homoskedasticity and no autocorrelation are not met, robust standard errors are applied with the aim of ensuring valid statistical inference.
The Hausman test indicates very low p-values, resulting in the fixed effects model to be preferred for the analysis
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What are the results of the analysis for hypothesis 4?
The estimated coefficients of average CO2 emissions are now positive, while the rest are still being negative and statistically significant. This time Adjusted ROS and average CO2 emission are statistically significant. The explanatory power of each model has been increased when comparing with Table 6 from the model from hypothesis 1
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What is the conclusion from hypothesis 4?
If an increase in average CO2 emissions leads to an increase in financial measurements, the opposite should hold as well. Therefore, a decrease in average CO2 emission should lead to a decrease in financial measurements. Despite average CO2 emissions being statistically significant to adjusted ROS, it cannot be concluded that a decrease in environmental performance, measured by average vehicle CO2 emissions, is positively related to the corporate financial performance of automotive manufacturers.
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How is the R2 value for hypothesis 4?
The model obtains an 𝑅2 value between 0.298 and 0.351 which, according to Gallego- Álvarez et al., (2015), should be seen as high.
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What does the period from 2015-2017 consists of?
This period of time consists of the implementation of Regulation (EU) No 333/2014 starting in 2016, with the new target of average CO2 emissions set at 95 g CO2/km.
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What does the calculated mean, median and SD from hypothesis 2 show?
the mean and median values of average CO2 emissions from 2015 and 2017 are close to be the same. This indicates that despite the implementation of a stricter environmental regulation the manufactures did not decrease average CO2 emissions. The median of ROA decreases for all three years, with the mean being the same in 2015 and 2017. ROE increases from 2015 to 2017. The mean of ROS increases for all three years, whereas the median decreases between 2015 and 2017. ROCE increases from 2015 to 2017. R&D is very stable around the mean of 0.033 and the median on 0.033.
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What is the conclusion of hypothesis 2?
It can be concluded that between 2015 and 2017 the automotive manufacturers did not decrease the mean and median of average CO2 emissions notably, despite the implementation of a stricter environmental regulation. One reason for this being that the automotive manufactures did achieve the 2015 target of 130 g CO2/km before deadline. The target of 130 g CO2/km will act as the upper limit of average CO2 emissions from the period 2016 to 2020. The results indicate that automotive manufacturers might be more interested in improving other parts of their businesses, when complying with the threshold. Financial measurements did in general increase, with the exception of ROA and the median of ROS. To answer hypothesis 2, the implementation of stricter environmental regulations, measured by average vehicle CO2 emissions, is positively related to the corporate financial performance of automotive manufacturers when comparing the year prior (2015), during (2016), and after (2017) the implementation of Regulation (EU) No 333/2014.
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What does the period from 2020-2022 consists of?
This period of time consists of the implementation of Regulation (EU) 2019/631, with the new target of average CO2 emissions to be percentage targets instead of absolute reduction targets.
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What does the calculated mean, median and SD from hypothesis 3 show?
the mean and median values of average CO2 emission from 2020 and 2022 have been decreased a lot. This indicates that the implementation of a stricter environmental regulation did lead to a decrease in average CO2 emissions. The mean and median for all of the financial measurements increases a lot in the period. Interestingly in 2020 R&D is the highest, the reason for this is probably that the automotive. manufactures need to comply with the target of 95 g CO2/km in 2021, therefore intensifying the R&D in 2020 to make sure this was achieved.
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What is the conclusion of hypothesis 3?
It can be concluded that between 2020 and 2022 the automotive manufacturers did decrease the mean and median of average CO2 emissions. From 2020 to 2021 it was crucial for the automotive manufacturers to achieve the target of 95 g CO2/km to avoid being fined, which does not have anything to do with the new regulation of 2021 and onwards. However, from 2021 and 2022 the decrease continues. Financial measurements did increase. To answer hypothesis 3, the implementation of stricter environmental regulations, measured by average vehicle CO2 emissions, is positively related to the corporate financial performance of automotive manufacturers when comparing the year prior (2020), during (2021), and after (2022) the implementation of Regulation (EU) 2019/631.
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What type of analysis did you use to answer hypothesis 5?
To answer hypothesis 5 descriptive statistics analysis together with an analysis of scatterplot consisting of accumulated financial measurements and accumulated average CO2 emissions of automotive manufacturers is applied using data from 2012 to 2022.
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What does the descriptive statistics analysis of hypothesis 5 consists of and what are the results?
using sorted company effects within R, on the fixed effects model from hypothesis 1. This ranks each company factoring in the effects of each company. The best overall performing company is Audi, with the worst company being Renault Group. In comparison to the other companies, Audi scores very high on all financial performance measurements beating all the competitors for both the mean and median values, with the exception of ROS mean of BMW and the ROS median of BMW and Toyota and the ROCE median of Volvo. However, from an environmental perspective Audi is having the highest average CO2 emission mean and median. At the bottom end of the table Renault group shows very poor financial performance compared to the other companies. However, their environmental performance is the second lowest for average CO2 emission mean and median. Toyota is the lowest scoring company with regard to average CO2 emission mean and median, however, they are placed as number 5 because of their better performance in financial measurements than competitors. Ford, Volkswagen Group and Hyundai all have mediocre mean and median average CO2 emissions, and are placed at 11th, 9th and 8th respectively. Kia is having almost identical mean and median average CO2 emissions but are placed at 3rd. This indicates that environmental performance impacts corporate financial performance of individual automotive manufacturers differently.
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How did you construct the scatterplot used to answer hypothesis 5?
The scatterplot shows the accumulated financial measurements and accumulated average CO2 emissions for all the observed years. These have been accumulated to show how each of the 12 companies position themselves when all the values are added together.
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What is the results of the scatterplot?
Audi is the overall best performer regarding accumulated financial performance while being the worst performer of accumulated average CO2 emissions. However, we see that Mercedes-Benz together with BMW Group also have high accumulated financial measurements while also performing badly at accumulated average CO2 emissions. Kia being placed 3rd in Table 10 is visualized here with Kia having higher accumulated financial measurements while having lower accumulated average CO2 emissions than Ford, Volkswagen Group and Hyundai. The poor financial performance but great environmental performance of Renault Group is visualized within the scatterplot and confirms the placement of the company within Table 10. Toyota is placed with the lowest accumulated average CO2 emissions which is identical to Table 10. In general Toyota and PSA / Stellantis show great financial performance while also showing great environmental performance. Based on Table 10 and Figure 1 it can be concluded that environmental performance impacts corporate financial performance of individual automotive manufacturers differently.
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What can be said about the differences between hypothesis 1 and hypothesis 4?
Despite the only difference being two years, the results of hypothesis 1 and hypothesis 4 are different regarding the impact of average CO2 emissions. The interpreted results of hypothesis 1 indicates that a decrease in average CO2 emissions leads to an increase in the financial measurements. Whereas the results of hypothesis 4 indicates that an increase in average CO2 emissions leads to an increase in financial measurements.
The decrease in mean and median of average CO2 emissions from 2020 to 2022, combined with the increase in mean and median for all the financial measurements results in the differences between hypothesis 1 and hypothesis 4.
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What was the optimal solution for the manufacturers prior to the implementation of Regulation (EU) 2019/631?
the companies would, from a financial perspective, be better off by increasing their average CO2 emissions to the threshold of 130 g CO2/km. This indicates a “lose-win” approach where lose indicates that companies are better off increasing their average CO2 emissions harming environmental performance, and simultaneously increasing competitiveness and competitive advantage, indicating a win.
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What was the optimal solution for the manufacturers after the implementation of Regulation (EU) 2019/631?
the companies would, both from a financial and environmental perspective, be better off by decreasing their average CO2 emissions as a way of increasing financial measurements. This indicates a “win-win” approach where enhanced environmental performance in the form of a decrease in the average CO2 emissions leads to an increase in competitiveness and competitive advantage.
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How is Regulation (EU) 2019/631 related to Porter van der Linde (1995) six purposes of environmental regulations?
The regulation is related to the fifth purpose, because the regulation help to ensure fair competition as one company cannot gain a competitive position by avoiding investments into decreasing average CO2 emissions.
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Elaborate on the lose-win and win-win approach.
The lose-win situations is when one company is able to be better of by neglecting the environmental performance to increase the financial performance. This will be a lose for the environment, but a win for the company from a financial perspective. The win-win situation is when the company enhance their environmental performance, while also enhancing their financial performance resulting in a win-win situation.
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Elaborate on the overall non-significant results from hypotheses 1 and 4.
It is not unique to my thesis that the results of the analysis in non-significant. Prior literature also came to the same conclusion. Fuji et al. (2013) reported that within their second model of their study, environmental performance measured by average CO2 emissions showed no significant effect on financial performance measured by ROA and ROS. Likewise, Iwata & Okada (2011) reported that within their study, environmental performance did not in general have significant effects on financial performance measured by ROA, ROE and ROS. Busch & Hoffmann (2011) reported that within their study, environmental performance did have a significant impact on financial performance for Tobin’s Q, and therefore not for ROA and ROE. It is, however, hard to compare the results of different studies that use a wide variety of environmental performance measurements together with different ways of calculating financial measurements.
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Elaborate on the significantly negative effect of R&D found in the analysis of hypothesis 1 and 4.
Prior literature such as Iwate & Okada 2011 finds that the effects of R&D on financial performance measurements are significantly negative. Iwata & Okada (2011) argued that their result could be attributed to the fact that their sample consisted of five-year panel data, and therefore estimations were only capable of capturing the short-run effects. In contrast, 11 years of panel data is utilised in the analysis covering the medium- to long-term effects and still achieve significantly negative effects. One reason for this continued negative effect can be the result of the continued investments into R&D from the automotive manufacturers throughout the period, as earlier argued in the section regarding control variables. Furthermore, environmental regulations incur policy-compliance costs, which would not occur in their absence. Investments into designing, developing and improving new vehicles to be able to comply with regulations.
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How does pollution prevention and decreasing CO2 emissions relate?
Similarly to pollution prevention, where further investments are required to be able to realize smaller and smaller reductions, average CO2 emissions reductions also require investments to realize smaller and smaller reductions, and as a result increasing R&D expense.
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Why is dynamic capabilities appropriate for automotive manufacturers to utilize?
Changes in policy, regulations, technology, and customer expectations are all areas that the automotive manufacturers are exposed to, which makes dynamic capabilities appropriate for sustainability transitions. Only companies with strong dynamic capabilities are able to adapt their resources and capabilities over time to take advantage of new market opportunities.
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Automotive manufacturers are facing related external impacts, will they then develop identical capabilities?
Companies facing related external environments have the ability to develop similar, but not identical, capabilities. The reason being that capabilities themselves are dependent on the company’s existing structures, strategies, and resources. Those arguments indicates that the companies do not possess identical strategically resources. The reason being that if all companies were pursuing the same strategies, then none of them would enjoy competitive advantage and all the companies would either move towards Toyota or Audi. However, they are not able to do that, and most of them end up together in the group consisting of Volkswagen Group, Hyundai, Ford and Volvo.
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What has prior research on sustainability shown and how does this apply to the results found in hypothesis 5?
It has shown that going beyond complying with environmental regulations is difficult and requires capabilities. Renault, Toyota and PSA / Stellantis complies with the regulations to a larger degree than their competitors, indicating that they might possess certain capabilities that help them achieve such a position. As a result, they might be better prepared and more flexible for the future with stricter regulations
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What is the advantages of gaining and sustaining a positive environmental performance over short- medium, and long-term?
Companies have the ability to enhance their efficiency in acquiring cost savings and improvements in their financial performance by envisioning sustainable technologies and products that can lead to competitive advantage for companies. Furthermore, once companies have gained positive environmental reputation, it will function as a valuable inimitable resource that is difficult to change if sustained. This could indicate that Renault Group could use its position with low average CO2 emissions to get closer towards Toyota’s financial performance developing a competitive advantage.
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Who dominate the automotive industry?
The industry is dominated by Audi, BMW, and Mercedes-Benz as they achieve higher return on financial measurements compared to their competitors. The companies are supplying different customer groups of the automotive market. Toyota, PSA / Stellantis and Renault Group operates within the ordinary vehicle segment, whereas Audi, BMW and Mercedes-Benz operate within the luxury vehicle segment.
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How do you make sure that the thesis is reliable?
To comply with reliability of the thesis, there has been used established research methods and designs. Arguments about the selection of appropriate measurements scales for the dependent variables and control variables are conducted by using prior literature, instead of composing own scales
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How do you make sure that the thesis is replicable?
To increase replication, collected secondary data have been provided throughout the thesis in tables, figures and within the appendix. Resulting in full transparency, giving other researchers the opportunity to see exactly which numbers have been used to calculate each variable.
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How is the thesis internally valid?
the thesis is deemed to be internally valid as the conclusion of the statistical analysis are valid for the population of companies studied. The statistical conclusions have the opportunity to be generalized to other companies of automotive manufactures than those represented in the thesis.
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How is the thesis externally valid?
Furthermore, the possibilities of generalizing the findings towards other populations of automotive vehicle types, such as commercial vehicles are present as they are also subject to regulations regarding the average CO2 emissions. As a result, the thesis is also externally valid.
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What is the limitations of the thesis?
Sample size
Secondary data
Conversion factor
Lack of prior studies to compare with
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Why is sample size a limitation of the thesis?
The sample size only consists of 12 companies measured across 11 years. It has however, been argued that the 12 companies represent a market share of 93.1 % in 2022, making it a comprehensive representation of the population, nevertheless. Additionally increasing the observation period, by adding additional years is also complicated as some of the manufacturers did not report average CO2 emissions before 2012.
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Why is secondary data a limitation of the thesis?
The thesis is based solely on secondary data collected from companies’ different official reports. Such data is self-reported, and often being a limitation within research.
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Why is the conversion factor a limitation of the thesis?
The conversion of WLTP values to NEDC is implemented for the years 2021 and 2022 and functions as a limitation to the thesis. Despite this conversation rate not being scientifically confirmed, it is argued to be the best obtainable estimate.
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Why is lack of prior studies a limitation of the thesis?
Most of the studies investigating the relationship between environmental and financial performance measure environmental performance as pollution or greenhouse gas emissions in the form of average CO2 emissions from scope 1 and scope 2 emissions. More studies conducted in this area with the same perspective is necessary to be able to fully interpret and develop an understanding of the results obtained.
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How does the implementation of the NRBV help managers and companies?
By focusing on improvements to current products and processes, while a vision of sustainable development should help with positioning themselves for future long-term markets.
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How could you have measured financial performance in a different way?
Measuring financial performance differently or using other variables such as Tobin’s Q, which is also often used.
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What other analysis could you have used?
One often used analysis model from the literature is the ordinary least square regression model.
Difference-in-Differences (DiD):
Evaluate the effect of a specific intervention or treatment by comparing the differences in outcomes over time between a treatment group and a control group. Can be hard to find a control group, thats why i didnt do this one for h2 and h3.
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What could future research do to broaden the research?
Future research could investigate the relationship between environmental and financial performance for light commercial vehicles. Basically, the same as what has been done in this thesis for passenger vehicles. Regulations about light commercial vehicles are also found within Regulation (EU) 2019/631.
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For future research, how did you get rid of the outliers?
I used interquartile range (IQR) in R, to remove outliers. IQR is found by finding the median of the lower part of the data set, which will be Q1, and finding the median of the upper part of the data set, which will be Q2. Then take Q2 - Q1 = IQR.
The outliers in the lower part are identified by Q1 - 1,5 * IQR whereas the outliers in the upper part are identified by Q3- 1,5 * IQR.
Values below or above the limit will be seen as a outlier.
Multiplying IQR with 1,5 is a standard rule for IQR.
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Which authors uses the RBV and NRBV in the same way?
Gallego-Álvarez 2015, M. V. Russo & Fouts (1997) and Lee & Min (2015)
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