Energy intensity constraints and corporate investment strategies: Evidence from Chinese listed enterprises

Tao Ge, Zixuan Hao, Yuan Chen and Zhanbo Chen

Finance Research Letters, 2024, vol. 64, issue C

Abstract: This study theoretically analyzes and empirically tests the impact and mechanism of energy intensity constraints on corporate investment strategies. The results find that energy intensity constraints significantly increase corporate green investment, particularly in front-prevention investment. Heterogeneity analysis indicates that the optimization effect of energy intensity constraints on corporate investment strategies is stronger in state-owned enterprises and high energy-consuming industries. Mechanism analysis reveals that energy intensity constraints optimize corporate investment strategies by increasing policy incentives and policy restraints. The findings provide important implications for policymakers to promote corporate sustainability and potential directions for future related research.

Keywords: Energy intensity constraints; Corporate investment strategies; Front-prevention investment; End-treatment investment; Corporate sustainability (search for similar items in EconPapers)
JEL-codes: G11 G34 Q48 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004963

DOI: 10.1016/j.frl.2024.105466

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