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Corporate environmental governance scheme and investment efficiency over the course of COVID-19

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  • Liu, Haiyue
  • Jiang, Jie
  • Xue, Rui
  • Meng, Xiaofan
  • Hu, Shiyang

Abstract

Taking the COVID-19 outbreak as the exogenous shock, we use quarterly reports of Chinese listed firms to examine whether enhanced environmental governance scheme improves corporate investment efficiency over the course of COVID-19. The results show that after the outbreak, firms with greater environmental governance scheme experience more efficient investments, with this effect being more pronounced in non-state-owned enterprises, firms unlisted as key pollution-monitoring units, and firms with higher financial constraints. The results are robust to a battery of robustness checks. These findings provide new evidence on the importance of environmental governance in reaping economic benefits and resilience during crisis times.

Suggested Citation

  • Liu, Haiyue & Jiang, Jie & Xue, Rui & Meng, Xiaofan & Hu, Shiyang, 2022. "Corporate environmental governance scheme and investment efficiency over the course of COVID-19," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000502
    DOI: 10.1016/j.frl.2022.102726
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