The impact of capital leverage on green firms’ investment: New evidence regarding the size and age effects of Chinese green industries

Kai Chang, Jiehuan Ding, Qichun Lou, Zesheng Li and Jiahui Yang

Finance Research Letters, 2021, vol. 38, issue C

Abstract: This article primarily and specifically focuses on 412 sample green firms from the green industries in China and contributes by investigating the leverage -investment associations based on firm-specific sizes and ages using the generalized method of moments (GMM) firm-level panel data analysis approach. The book value of leverage has a negative impact on green-firm investment. Meanwhile, the market value of leverage and debt maturity have positive impacts on green-firm investment when including the new dimensions of firm-specific size and age. A greater firm size and older firm age can reduce the marginal effects of the book value of leverage and the market value of leverage on green-firm investment. These results provide new contributions focusing on how green firm-specific size and age affect the leverage-investment nexus.

Keywords: green firms; investment; leverage; firm size; firm age; GMM panel data analysis (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612319307901
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:38:y:2021:i:c:s1544612319307901

DOI: 10.1016/j.frl.2020.101529

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().