What question did this study set out to answer?

To evaluate the long-term economic consequences of corporate environmental responsibility on earnings persistence and investor response in heavily polluting firms.

April 2, 2020Business Strategy and the Environment

Long‐term economic consequences of corporate environmental responsibility: Evidence from heavily polluting listed companies in China

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Authors

FXFei XuQingdao University of Science and Technology MYMian YangWuhan University QLQiangyi LiChinese Academy of Social Sciences

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Implication

Firm-level empirical analysis reveals corporate environmental responsibility enhances earnings persistence in heavily polluting companies, suggesting substantial long-term financial benefits.

Key Points

To evaluate the long-term economic consequences of corporate environmental responsibility on earnings persistence and investor response in heavily polluting firms.
Analyzed firm-level empirical data from 1,010 heavily polluting listed companies in China.
Investigated pathways involving operational efficiency, credit costs, and capital market investor responses across state-owned versus non-state-owned enterprises.
Corporate environmental responsibility significantly improved earnings persistence and earnings quality in heavily polluting firms.
Long-term financial benefits were mediated by increased operational efficiency and reduced corporate credit costs.
Corporate environmental responsibility strengthened investor response to accounting earnings, yielding more pronounced economic benefits for state-owned enterprises.

Cite This Study

Xu et al. (2020) studied this question.

synapsesocial.com/papers/6a1096cd1406dce28afcc08a https://doi.org/10.1002/bse.2500

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Implication

Firm-level empirical analysis reveals corporate environmental responsibility enhances earnings persistence in heavily polluting companies, suggesting substantial long-term financial benefits.

Long‐term economic consequences of corporate environmental responsibility: Evidence from heavily polluting listed companies in China

Discussion

Member takes

Implication

Key Points

Cite This Study

Long‐term economic consequences of corporate environmental responsibility: Evidence from heavily polluting listed companies in China

Discussion

Member takes

Implication

Key Points

Cite This Study

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