Do environmentally sustainable practices lead to financially less constrained firms? International evidence
In this study, we utilise a comprehensive dataset from 41 countries spanning 2002–2013 and show that environmentally sustainable practices (ESP) are negatively associated with financial constraints of firms. We refine ESP into three components: emission reduction, product innovation and resource red...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
2019
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| Online Access: | http://hdl.handle.net/20.500.11937/79958 |
| _version_ | 1848764135015186432 |
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| author | Banerjee, R. Gupta, K. Mudalige, Priyantha |
| author_facet | Banerjee, R. Gupta, K. Mudalige, Priyantha |
| author_sort | Banerjee, R. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In this study, we utilise a comprehensive dataset from 41 countries spanning 2002–2013 and show that environmentally sustainable practices (ESP) are negatively associated with financial constraints of firms. We refine ESP into three components: emission reduction, product innovation and resource reduction, and show that firms which are more innovative and efficient in reducing wastage of resources are most benefited by ESP. The findings are even stronger for firms operating in countries with high institutional qualities, in high emission and highly competitive industries. These results are important to lending institutions for making financing decisions. Policymakers and investors could also utilise ESP as a key distinguishing factor for firms to benefit from lower financial constraints. Appropriate support and initiatives from local and national regulators could motivate firms to be more environmentally friendly. |
| first_indexed | 2025-11-14T11:14:32Z |
| format | Journal Article |
| id | curtin-20.500.11937-79958 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:14:32Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-799582020-08-11T02:08:51Z Do environmentally sustainable practices lead to financially less constrained firms? International evidence Banerjee, R. Gupta, K. Mudalige, Priyantha In this study, we utilise a comprehensive dataset from 41 countries spanning 2002–2013 and show that environmentally sustainable practices (ESP) are negatively associated with financial constraints of firms. We refine ESP into three components: emission reduction, product innovation and resource reduction, and show that firms which are more innovative and efficient in reducing wastage of resources are most benefited by ESP. The findings are even stronger for firms operating in countries with high institutional qualities, in high emission and highly competitive industries. These results are important to lending institutions for making financing decisions. Policymakers and investors could also utilise ESP as a key distinguishing factor for firms to benefit from lower financial constraints. Appropriate support and initiatives from local and national regulators could motivate firms to be more environmentally friendly. 2019 Journal Article http://hdl.handle.net/20.500.11937/79958 10.1016/j.irfa.2019.03.009 restricted |
| spellingShingle | Banerjee, R. Gupta, K. Mudalige, Priyantha Do environmentally sustainable practices lead to financially less constrained firms? International evidence |
| title | Do environmentally sustainable practices lead to financially less constrained firms? International evidence |
| title_full | Do environmentally sustainable practices lead to financially less constrained firms? International evidence |
| title_fullStr | Do environmentally sustainable practices lead to financially less constrained firms? International evidence |
| title_full_unstemmed | Do environmentally sustainable practices lead to financially less constrained firms? International evidence |
| title_short | Do environmentally sustainable practices lead to financially less constrained firms? International evidence |
| title_sort | do environmentally sustainable practices lead to financially less constrained firms? international evidence |
| url | http://hdl.handle.net/20.500.11937/79958 |