Corporate Financialization, Financing Constraints, and Environmental Investment

This paper took non-financial listed companies on A-shares from 2014 to 2018 as samples to empirically test the relationship between corporate financialization, financing constraints, and environmental investment. The empirical results showed that the degree of corporate financialization is negatively related to environmental investment, and the negative relationship between long-term financial assets and environmental investment is more significant. Financialization has a “crowding out” effect on environmental investment when the firm is a non-state enterprise or a small-scale enterprise. Financialization has a “reservoir” effect on environmental investment when it is subject to less financing constraints. Further analysis revealed that both long-term and short-term financial assets have an inhibiting effect on environmental investment when environmental regulations are stringent. This paper provides a theoretical reference for companies to make investment decisions on financial assets and to improve their ability on environmental investment and green sustainability.

Green Policy, Corporate Social Responsibility and Environmental Protection Investments - Evidence from Chinese Listed Companies in Heavy Pollution Industries

Corporate environmental investment decision-making behavior is influenced by both the external factor of government green policy and the internal factor of corporate social responsibility. This paper empirically examines the effects of green policies and corporate social responsibility on corporate environmental investment using a fixed-effects panel data model with a sample of Chinese listed companies in the heavy pollution industry from 2013-2019 and further analyzes the possible moderating role played by market competition. The results show that: (1) Green policy and corporate environmental investment have an inverted “U-shaped” relationship, which indicates that there is a ”degree” limit to the impact of green policy on corporate environmental investment. (2) There is a U-shaped relationship between green investment and environmental governance green policy tools and corporate environmental investment, while infrastructure green tool and corporate environmental investment in an inverted U-shaped relationship (3) Corporate social responsibility and the scale of its environmental investment has a positive relationship, green policy and corporate social responsibility have a joint effect corporate environmental investment. (4) The higher the degree of market competition, the more significant the effect of green policy on corporate environmental investment.

Is Cross-Shareholding Conducive to Corporate Sustainability? Evidence From the Environmental Investment of Chinese Listed Firms

This article examines the impact of cross-shareholding on corporate environmental investment (Env) using Chinese listed firms from 2014 to 2019 as the research setting. The results show that there is a positive impact of cross-shareholding on corporate environmental investment. The finding remains robust to a battery of robustness checks. In addition, the heterogeneity analysis illustrates that the positive impact of cross-shareholding on corporate environmental investment is more pronounced in state-owned firms and high-polluting industries when compared to non-state-owned firms and low-polluting industries, respectively. This study extends the research on cross-shareholding and provides practical implications for corporate sustainable development.

Be Green to Be Innovative: The Role of Government Subsidies

Corporate environmental investment has long been recognized as a non-market strategy that helps secure both economic and social benefits. However, we know much less about how environmental investment affects corporate innovation. We argue that investment in environmental protection is an important source of institutional legitimacy for firms to secure government resources, thus providing financial support for corporate innovation activities. Using a sample of Chinese industrial firms, we find that firms investing more in environmental protection can receive more government subsidies and then have better innovation performance. This study emphasizes the mechanism of government resources, which enriches our understanding of the effect of environmental investment on corporate innovation.

Comparative analysis of anthropogenic impact levels and payments for natural resource use in the Russian model areas

An assessment of the effectiveness of the existing system of paid nature natural resource usage in terms of the effect of reducing the negative impact on the environment by nature users is considered. The theory and practice of the effectiveness of environmental investment, as well as environmental management fees, were used as the basis of the methodology. The basis of the methodological tools consists of calculation and analytical, comparative methods, methods of system and structural analysis. The model territories of the ecological rating of the constituent entities of the Russian Federation are determined, the degree of anthropogenic impact is estimated on the basis of specific pollution indicators, the analysis of environmental investment features in the selected territories is carried out, the need for improving environmental policy is proved on the basis of the assessment of the ratio of payment for regulatory and excess pollution by environment.

Regional Environmental Supervision And Corporate Environmental Investment: From The Perspective of Ecological Damage Compensation

Based on the “Pilot Reform of the Compensation System for Ecological and Environmental Damage” launched in 2015 and a research sample of listed companies in China's heavy pollution industry from 2014 to 2017, this paper uses a difference-in-differences model to empirically test the impact of the compensation system on corporate environmental investment, as well as the moderating effect of market degree and firm ownership. The result shows that the implementation of the compensation system has significantly promoted corporate environmental investment, and the market degree has a moderating effect, but the supervision effect remains the same due to firm ownership. Local government’s strict environmental supervision on local enterprises is the important channel to ensure the function of ecological damage compensation system. This research provides a reference for the national government to formulate specific and effective environmental policies, stimulate the environmental governance motivation of local governments, and encourage enterprises to assume environmental responsibilities, to achieve green and sustainable development.