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Corporate environmental governance scheme and investment efficiency over the course of COVID-19
Haiyue Liu1, Jie Jiang1, Rui Xue2
1Business School | Sichuan University, Chengdu, Sichuan, China.
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.
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