The cost of hypocrisy: Does corporate ESG decoupling reduce labor investment efficiency?

Ran Di and Changqing Li

Economics Letters, 2023, vol. 232, issue C

Abstract: This study finds that ESG decoupling reduces labor investment efficiency mainly by increasing financial constraints and agency costs. ESG decoupling exacerbates both labor overinvestment and labor underinvestment. And environmental uncertainty might exacerbate the negative effect of ESG decoupling on firms.

Keywords: ESG decoupling; Labor investment efficiency; Financial constraint; Agency cost (search for similar items in EconPapers)
JEL-codes: G31 M14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:232:y:2023:i:c:s0165176523003804

DOI: 10.1016/j.econlet.2023.111355

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