Corporate Performance, Market-Industry Competition and Enterprise Environmental-Protection Investment

Liu Yang, Junting Tan, Weiyi Xia, Zhaomei Chi, Han Qin, Quanxin Gan and Qin Yang
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Liu Yang: School of International Education, Guangxi University of Finance and Economics, Nanning 530003, China
Junting Tan: MPAcc Center, Guangxi University of Finance and Economics, Nanning 530003, China
Weiyi Xia: Fangchenggang College, Guangxi University of Finance and Economics, Nanning 530003, China
Zhaomei Chi: School of International Education, Guangxi University of Finance and Economics, Nanning 530003, China
Han Qin: MPAcc Center, Guangxi University of Finance and Economics, Nanning 530003, China
Quanxin Gan: Admissions and Employment Office, Guangxi University of Finance and Economics, Nanning 530003, China
Qin Yang: School of International Education, Guangxi University of Finance and Economics, Nanning 530003, China

Sustainability, 2022, vol. 14, issue 9, 1-19

Abstract: Worldwide, many countries regard green as a keyword related to development, and investments into environmental protection are an important way for enterprises to achieve green development. Therefore, clarifying which factors influence enterprises to invest into environmental protection is very important. Starting from micro-enterprises and using the data from companies listed in China’s A-share manufacturing industry from 2008 to 2019, in this study, we empirically analyze the relationship between corporate performance (CP) and the scale of investments by enterprises into environmental protection (EI) and analyze the moderating effect of industry competition on the relationship between CP and EI. The result shows that (1) a positive correlation can be found between CP and EI; (2) fierce industry competition can increase the positive impact of CP on EI; and (3) compared with industries with non-heavy pollution, fierce industrial competition increases the positive impact of CP on EI in industries with heavy pollution. The research results show that performance is a key factor influencing enterprises’ decisions about investments into environmental protection, and industry competition can stimulate enterprises to invest into environmental protection. This study explores the internal and external factors influencing an organization to promote active behaviors of investing into environmental protection, provides a reference for enterprises to explore “win–win” paths, and provides a certain theoretical basis for the government to improve relevant regulations.

Keywords: corporate performance; enterprise environmental-protection investment; industry competition (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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