Corporate strategic aggression and environmental investment decisions: Evidence from A-share listed firms

Xinyuan Zhang, Jiangqiu Wu, Mohammad Nazri Bin Mohd Nor and Chee Heong Quah

International Review of Financial Analysis, 2024, vol. 95, issue PC

Abstract: Corporate strategy greatly influences corporate investment activities. This study seeks to better understand the relationship between the level of corporate strategic aggression and environmental investment decisions based on 2011–2020 data. We find that increasing the intensity of strategic aggression effectively increases environmental investment. Moreover, this effect is incentivized by good corporate environmental, social, and governance performance, innovation ability, and management tone manipulation. Although financing constraints may hinder the positive effects of corporate aggression on environmental investment, independent directors and corporate risk promote maximum positive effects. These findings enable companies to identify strategically motivating factors for improving environmental protection.

Keywords: Strategic aggressiveness; Environmental investment decision; ESG; Innovation ability; Management tone manipulation (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:95:y:2024:i:pc:s1057521924004605

DOI: 10.1016/j.irfa.2024.103528

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