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Brand capital development, climate risk, and corporate investment efficiency

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  • Liu, Chengcheng
  • Zhang, Mingrui
  • Lin, Yu-En
  • Li, Qing

Abstract

Using data on Chinese A-share listed companies from 2010 to 2022, we empirically examine the impact of brand capital development on corporate investment efficiency as well as the moderating effect of climate risk. The findings show that brand capital development significantly improves corporate investment efficiency and that climate risk intensifies the positive impact of brand capital development on corporate investment efficiency. Further analyses reveal that the efficiency-increasing effect of brand capital development is more pronounced for firms with fewer financing constraints, better managerial abilities, and lower marketing capabilities. Our results remain robust to alternative measures of brand capital development, climate risk, and corporate investment efficiency and are not driven by endogeneity issues. This study contributes to the literature on brand capital, which emphasizes the importance of customer value for investment and connects the front and back ends of corporate value creation.

Suggested Citation

  • Liu, Chengcheng & Zhang, Mingrui & Lin, Yu-En & Li, Qing, 2026. "Brand capital development, climate risk, and corporate investment efficiency," Journal of Business Research, Elsevier, vol. 202(C).
    • Handle: RePEc:eee:jbrese:v:202:y:2026:i:c:s0148296325005855
    DOI: 10.1016/j.jbusres.2025.115762
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