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Is too much green investment a good thing for corporate sustainable development performance?

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  • Zhu, Aiping
  • Chen, Qing

Abstract

This paper explores how green investment impacts corporate sustainable development using data from China's A-share listed companies (2009–2023). It finds an inverted U-shaped relationship, suggesting moderate green investment best enhances sustainability. Strict environmental regulations and low financing constraints boost positive effects. The study innovatively examines green investment's impact on financial and environmental performance, revealing its complex mechanisms. This research expands understanding of performance outcomes and offers insights for optimizing green investment strategies to promote sustainable enterprise development.

Suggested Citation

  • Zhu, Aiping & Chen, Qing, 2025. "Is too much green investment a good thing for corporate sustainable development performance?," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 2164-2182.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:2164-2182
    DOI: 10.1016/j.eap.2025.08.015
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    1. Pan, Changchun & Meng, Xiangwei & Huang, Yuzhe, 2026. "The impact of fintech on corporate sustainable development performance: Evidence from Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 81(C).

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