Environmental regulation, intelligent manufacturing and corporate investment & financing: Evidence from industrial robot investment

Zhensheng Li, Junpeng Zhu and Shuqiong Wang

Pacific-Basin Finance Journal, 2024, vol. 87, issue C

Abstract: Industrial robots, as a core technology and essential tool in intelligent manufacturing, have brought about a new transformation in industrial production patterns. China is at a critical juncture in its green transition and urgently needs to increase investments in industrial robots. Based on the policy shock provided by implementing the Clean Air Action in 2013, we construct a quasi-natural experiment to assess the impact of escalating environmental policies on industrial robot investment. The results indicate that the stringent regulation significantly inhibited high-pollution enterprises from adopting industrial robots. Mechanism analysis reveals that the obstacle to corporate investment is the reason for the suppression of industrial robot installation. Compared to equity financing, constraints from debt financing are the primary channel inhibiting investment. Furthermore, factors such as corporate ownership and industry concentration also play a moderating role in the policy effect. The findings of this paper provide insights for supporting policies aimed at sustainable development.

Keywords: Environmental regulation; Industrial robots; Listed firms; Policy evaluation; Mechanism analysis (search for similar items in EconPapers)
JEL-codes: G30 O14 Q38 Q56 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:87:y:2024:i:c:s0927538x24002294

DOI: 10.1016/j.pacfin.2024.102477

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