IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i7p6264-d1116898.html
   My bibliography  Save this article

Asset Structure, Asset Utilization Efficiency, and Carbon Emission Performance: Evidence from Panel Data of China’s Low-Carbon Industry

Author

Listed:
  • Erli Dan

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Jianfei Shen

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Xinyuan Zheng

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Peng Liu

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Ludan Zhang

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Feiyu Chen

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

Abstract

With the development of a low-carbon economy, corporate carbon emission performance has become an important premise for green financing. Compared with high-carbon industries, companies in low-carbon industries have their own carbon advantages and receive less attention. In order to highlight the value of carbon emission performance in low-carbon industries, further investigation on the basis of low-carbon industries is still needed. In terms of fixed assets, which are indicators for an important source of carbon emissions in intensive carbon industries, this study explores the relationship between asset structure, asset utilization efficiency, and carbon emission performance in low-carbon industries. This study selects Chinese listed companies from low-carbon industries that have disclosed their carbon emission performance from 2010 to 2021 as samples. The panel model is used for regression analysis, and then the Arellano-Bover/Blundell-Bond panel dynamic data model is used to solve the problem of endogeneity. The results show that the higher the fixed asset ratio, the worse the carbon emission performance. Asset utilization efficiency weakens the inhibitory effect of the fixed asset ratio on carbon emission performance. This study verifies the significant impact of fixed assets on the carbon emission performance of low-carbon industries as well as the promotion effect of asset utilization efficiency on carbon emission performance. Further investigation verified the promoting effect of corporate growth capabilities on carbon emission performance with two mechanisms, namely the relationship between fixed assets (independent variable)-asset utilization efficiency and (mediator)-corporate growth capabilities (dependent variable) or the relationship between asset utilization efficiency (independent variable)-corporate growth capabilities and (mediator)-fixed assets (dependent variable) from perspectives of enterprise value and expansion. This study expands the influencing factors of carbon emissions in low-carbon industries and is a theoretical supplement to a large number of high-carbon studies. At the same time, it also has certain implications for the carbon emission management practices of enterprises in low-carbon industries. It also reveals the urgency for the government and research institutions to clarify the carbon emission capacity of different fixed assets. Thus, it is convenient for low-carbon industries and high-carbon industries to carry out more refined carbon management and give full play to their carbon advantages.

Suggested Citation

  • Erli Dan & Jianfei Shen & Xinyuan Zheng & Peng Liu & Ludan Zhang & Feiyu Chen, 2023. "Asset Structure, Asset Utilization Efficiency, and Carbon Emission Performance: Evidence from Panel Data of China’s Low-Carbon Industry," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:6264-:d:1116898
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/7/6264/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/7/6264/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhu, Bangzhu & Xu, Chenxin & Wang, Ping & Zhang, Lin, 2022. "How does internal carbon pricing affect corporate environmental performance?," Journal of Business Research, Elsevier, vol. 145(C), pages 65-77.
    2. K.E. Hughes II & J. Kenneth Reynolds, 2001. "Uncertainty Associated with Future Environmental Costs and the Market's Differential Response to Earnings Information," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(9&10), pages 1351-1386.
    3. Avenyo, Elvis Korku & Tregenna, Fiona, 2022. "Greening manufacturing: Technology intensity and carbon dioxide emissions in developing countries," Applied Energy, Elsevier, vol. 324(C).
    4. Marcellia Susan, 2022. "The impact of corporate governance, capital structure, company size, and assets structure on financial performance: a study on the corporate governance perception index participants," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 15(1), pages 42-50.
    5. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2011. "Does it really pay to be green? Determinants and consequences of proactive environmental strategies," Journal of Accounting and Public Policy, Elsevier, vol. 30(2), pages 122-144, March.
    6. Ioan Batrancea & Ioan-Dan Morar & Ema Masca & Sabau Catalin & Liviu Bechis, 2018. "Econometric Modeling of SME Performance. Case of Romania," Sustainability, MDPI, vol. 10(1), pages 1-15, January.
    7. Stuart L. Hart & Gautam Ahuja, 1996. "Does It Pay To Be Green? An Empirical Examination Of The Relationship Between Emission Reduction And Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 5(1), pages 30-37, March.
    8. Mirziyoyeva, Ziroat & Salahodjaev, Raufhon, 2022. "Renewable energy and CO2 emissions intensity in the top carbon intense countries," Renewable Energy, Elsevier, vol. 192(C), pages 507-512.
    9. Paul Shrivastava, 1995. "Environmental technologies and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 183-200.
    10. Emrouznejad, Ali & Yang, Guo-liang, 2016. "A framework for measuring global Malmquist–Luenberger productivity index with CO2 emissions on Chinese manufacturing industries," Energy, Elsevier, vol. 115(P1), pages 840-856.
    11. Michiyuki Yagi & Shunsuke Managi, 2018. "Decomposition analysis of corporate carbon dioxide and greenhouse gas emissions in Japan: Integrating corporate environmental and financial performances," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1476-1492, December.
    12. Serkan Akguc & Naseem Al Rahahleh, 2018. "Effect of Shariah Compliance on Operating Performance: Evidence from GCC Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(12), pages 2874-2896, September.
    13. Alessi, Lucia & Ossola, Elisa & Panzica, Roberto, 2021. "What greenium matters in the stock market? The role of greenhouse gas emissions and environmental disclosures," Journal of Financial Stability, Elsevier, vol. 54(C).
    14. Kimitaka Nishitani & Shinji Kaneko & Satoru Komatsu & Hidemichi Fujii, 2014. "How does a firm’s management of greenhouse gas emissions influence its economic performance? Analyzing effects through demand and productivity in Japanese manufacturing firms," Journal of Productivity Analysis, Springer, vol. 42(3), pages 355-366, December.
    15. Fares Jamiel Hussein Alsufy, 2019. "The Impact of Capital Structure Components on the Total Assets Turnover: Evidence from Amman Stock Exchange," International Business Research, Canadian Center of Science and Education, vol. 12(7), pages 71-75, July.
    16. Lee, Ki-Hoon & Min, Byung & Yook, Keun-Hyo, 2015. "The impacts of carbon (CO2) emissions and environmental research and development (R&D) investment on firm performance," International Journal of Production Economics, Elsevier, vol. 167(C), pages 1-11.
    17. Wang, Wei & Zhang, Yue-Jun, 2022. "Does China's carbon emissions trading scheme affect the market power of high-carbon enterprises?," Energy Economics, Elsevier, vol. 108(C).
    18. Xia Wang & Lijun Zhang & Yaochen Qin & Jingfei Zhang, 2020. "Analysis of China’s Manufacturing Industry Carbon Lock-In and Its Influencing Factors," Sustainability, MDPI, vol. 12(4), pages 1-15, February.
    19. K.E. Hughes II & J. Kenneth Reynolds, 2001. "Uncertainty Associated with Future Environmental Costs and the Market’s Differential Response to Earnings Information," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(9‐10), pages 1351-1386, November.
    20. Stefan Lewandowski, 2017. "Corporate Carbon and Financial Performance: The Role of Emission Reductions," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1196-1211, December.
    21. Riaqa Mubeen & Dongping Han & Jaffar Abbas & Iftikhar Hussain, 2020. "The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    22. Mohammad Dulal Miah & Rashedul Hasan & Mohammed Usman, 2021. "Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    23. Alam, Md Samsul & Safiullah, Md & Islam, Md Shahidul, 2022. "Cash-rich firms and carbon emissions," International Review of Financial Analysis, Elsevier, vol. 81(C).
    24. Michelle Hanlon & Edward L. Maydew & Daniel Saavedra, 2017. "The taxman cometh: Does tax uncertainty affect corporate cash holdings?," Review of Accounting Studies, Springer, vol. 22(3), pages 1198-1228, September.
    25. Chen, Hong & Long, Ruyin & Niu, Wenjing & Feng, Qun & Yang, Ranran, 2014. "How does individual low-carbon consumption behavior occur? – An analysis based on attitude process," Applied Energy, Elsevier, vol. 116(C), pages 376-386.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haiqiao Wang & Li Shang & Decai Tang & Zhijiang Li, 2024. "Research Themes, Evolution Trends, and Future Challenges in China’s Carbon Emission Studies," Sustainability, MDPI, vol. 16(5), pages 1-22, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erli Dan & Jianfei Shen & Yiwei Guo, 2023. "Corporate Sustainable Growth, Carbon Performance, and Voluntary Carbon Information Disclosure: New Panel Data Evidence for Chinese Listed Companies," Sustainability, MDPI, vol. 15(5), pages 1-27, March.
    2. Roel Brouwers & Frederiek Schoubben & Cynthia Van Hulle, 2018. "The influence of carbon cost pass through on the link between carbon emission and corporate financial performance in the context of the European Union Emission Trading Scheme," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1422-1436, December.
    3. Linda Kusumaning Wedari & Amir Moradi‐Motlagh & Christine Jubb, 2023. "The moderating effect of innovation on the relationship between environmental and financial performance: Evidence from high emitters in Australia," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 654-672, January.
    4. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental and financial performance in the European manufacturing sector: An analysis of extreme tail dependency," The British Accounting Review, Elsevier, vol. 52(6).
    5. Wenbin Long & Le Luo & Hongfeng Sun & Qiqi Zhong, 2023. "Does going abroad lead to going green? Firm outward foreign direct investment and domestic environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 484-498, January.
    6. Falko Paetzold & Timo Busch & Sebastian Utz & Anne Kellers, 2022. "Between impact and returns: Private investors and the sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3182-3197, November.
    7. Saleh F. A. Khatib & Iyad H. M. Ismail & Naeem Salameh & Alhamzah F. Abbas & Ayman Hassan Bazhair & Hamid Ghazi H Sulimany, 2023. "Carbon Emission and Firm Performance: The Moderating Role of Management Environmental Training," Sustainability, MDPI, vol. 15(13), pages 1-19, July.
    8. Joan Torrent‐Sellens & Pilar Ficapal‐Cusí & Mihaela Enache‐Zegheru, 2023. "Boosting environmental management: The mediating role of Industry 4.0 between environmental assets and economic and social firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 753-768, January.
    9. Kimitaka Nishitani & Munehiko Itoh, 2014. "Product Innovation in Response to Environmental Standards and Competitive Advantage: A Hedonic Analysis of Refrigerators in the Japanese Retail Market," Discussion Paper Series DP2014-30, Research Institute for Economics & Business Administration, Kobe University.
    10. Shoaib Aslam & Mohamed H. Elmagrhi & Ramiz Ur Rehman & Collins G. Ntim, 2021. "Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1655-1673, May.
    11. Ki‐Hoon Lee & Beom Cheol Cin & Eui Young Lee, 2016. "Environmental Responsibility and Firm Performance: The Application of an Environmental, Social and Governance Model," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 40-53, January.
    12. Erragragui, Elias, 2018. "Do creditors price firms’ environmental, social and governance risks?," Research in International Business and Finance, Elsevier, vol. 45(C), pages 197-207.
    13. Evangeline O. Elijido-Ten & Peter Clarkson, 2019. "Going Beyond Climate Change Risk Management: Insights from the World’s Largest Most Sustainable Corporations," Journal of Business Ethics, Springer, vol. 157(4), pages 1067-1089, July.
    14. Eng, Li Li & Fikru, Mahelet G. & Vichitsarawong, Thanyaluk, 2021. "The impact of toxic chemical releases and their management on financial performance," Advances in accounting, Elsevier, vol. 53(C).
    15. Abdul Majid & Muhammad Yasir & Muhammad Yasir & Asad Javed, 2020. "Nexus of institutional pressures, environmentally friendly business strategies, and environmental performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 706-716, March.
    16. Hidemichi Fujii & Kazuyuki Iwata & Shinji Kaneko & Shunsuke Managi, 2013. "Corporate Environmental and Economic Performance of Japanese Manufacturing Firms: Empirical Study for Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 187-201, March.
    17. Qian, Wei & Schaltegger, Stefan, 2017. "Revisiting carbon disclosure and performance: Legitimacy and management views," The British Accounting Review, Elsevier, vol. 49(4), pages 365-379.
    18. Bai Xue & Zhuang Zhang & Pingli Li, 2020. "Corporate environmental performance, environmental management and firm risk," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1074-1096, March.
    19. V. Veeravel & E. K. S. Sadharma & Bandi Kamaiah, 2024. "Do ESG disclosures lead to superior firm performance? A method of moments panel quantile regression approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 741-754, January.
    20. David Bendig & Andreas Wagner & Kevin Lau, 2023. "Does it pay to be science‐based green? The impact of science‐based emission‐reduction targets on corporate financial performance," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 125-140, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:6264-:d:1116898. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.