Ownership Structure and Carbon Emissions of SMEs: Evidence from OECD Countries

Dorsaf Azouz Ghachem (), Nadia Basty and Qasim Zureigat
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Dorsaf Azouz Ghachem: Higher Institute of Management of Tunis, LR GEF-2A, University of Tunis, Tunis 2000, Tunisia
Nadia Basty: Higher Institute of Management of Tunis, LR GEF-2A, University of Tunis, Tunis 2000, Tunisia
Qasim Zureigat: School of Business, Sulaiman AlRajhi University, Al Bukayriyah 52726, Saudi Arabia

Sustainability, 2022, vol. 14, issue 21, 1-16

Abstract: This work investigates the impact that the ownership structure of small- and medium-sized enterprises (SMEs) in Organization for Economic Co-operation and Development (OECD) countries exerts on the level of corporate carbon emissions, as well as the moderating effect of innovation on this relationship. Based on panel data from 32 OECD countries during 2015–2020, a pooled least-square panel model was developed for estimation. The results show that public, foreign, and institutional investors have a significant negative effect on carbon emissions. Conversely, strategic investors contribute to increasing carbon emissions. Moreover, findings provide evidence of mixed moderating effects of innovation on the relationship between types of owners and carbon emissions. Hence, strategic shareholders contribute to implementing environmental policies through innovation, while public and foreign investors incur Research and Development expenditures to boost firms’ economic activity, ignoring social and environmental commitments. Our results confirm the relationship between ownership structure and carbon emissions and the moderating effects of innovation on this association. Environmental innovation allows for improving worldwide firms’ competitiveness and long-term performance.

Keywords: stakeholder theory; legitimacy; signal theory; climate change; ecological transition (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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