Strengthened enforcement, weakened efficiency: The effect of environmental inspection on corporate investment

Jingqi Wang, Wei Zhang, Gaofeng Zou and Yi Li

Economics Letters, 2023, vol. 232, issue C

Abstract: We examine the impact of China’s Central Environmental Protection Inspection on corporate investment efficiency. Results show a decline in investment efficiency of high-polluting firms, especially in non-state-owned and less politically connected firms, highlighting unforeseen negative effects of stricter environmental enforcement.

Keywords: Environmental regulatory enforcement; Investment efficiency; Over-investment (search for similar items in EconPapers)
JEL-codes: G30 Q51 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:232:y:2023:i:c:s016517652300349x

DOI: 10.1016/j.econlet.2023.111324

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