Financial constraints and environmental innovation: Does COVID-19 aggravate the effect?
Paper
Paper/Presentation Title | Financial constraints and environmental innovation: Does COVID-19 aggravate the effect? |
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Presentation Type | Paper |
Authors | Kabi, Md. Nurul, Miah, Mohammad Dulal, Rahman, Sohanur, Alam, Md Samsul and Sarker, Tapan |
Year | 2024 |
Place of Publication | Malaysia |
Conference/Event | 14th Financial Markets and Corporate Governance Conference 2024 |
Event Details | 14th Financial Markets and Corporate Governance Conference 2024 Parent Conference on Financial Markets and Corporate Governance Delivery In person Event Date 02 to end of 04 Apr 2024 Event Location Malaysia Event Venue Monash University Malaysia Event Web Address (URL) |
Abstract | This study examines the relationship between firms’ financial constraints and environmental innovation in the context of the Covid-19 pandemic. Using a global sample of 2,750 firms from 44 countries for the period 2005-2021, we find that firms’ financial constraints negatively affect environmental innovation. We further show that the Covid-19 pandemic has aggravated the negative effect of financial constraints by lowering investment in green activities. This study offers valuable insights to environmentally concerned policymakers, regulators, and investment strategists. From a practical point of view, our study suggests that both institutional and foreign investments as well as good governance can play an important role in mitigating the negative effect of financial constraints on environmental innovation. Our results are robust for different endogeneity identifications, subsamples, and alternative measurement techniques. |
Keywords | Environmental innovation; financial crisis; Covid-19; financial constraints; green finance |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 350204. Financial institutions (incl. banking) |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | North South University, Bangladesh |
College of Banking and Financial Studies, Oman | |
Queensland University of Technology | |
University of Derby, United Kingdom | |
School of Business |
https://research.usq.edu.au/item/zq3xz/financial-constraints-and-environmental-innovation-does-covid-19-aggravate-the-effect
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