Corporate strategic aggression and environmental investment decisions: Evidence from A-share listed firms

Document Type

Article

Publication Date

10-1-2024

Abstract

Corporate strategy greatly influences corporate investment activities. This study seeks to better understand the relationship between the level of corporate strategic aggression and environmental investment decisions based on 2011-2020 data. We find that increasing the intensity of strategic aggression effectively increases environmental investment. Moreover, this effect is incentivized by good corporate environmental, social, and governance performance, innovation ability, and management tone manipulation. Although financing constraints may hinder the positive effects of corporate aggression on environmental investment, independent directors and corporate risk promote maximum positive effects. These findings enable companies to identify strategically motivating factors for improving environmental protection.

Keywords

Strategic aggressiveness, Environmental investment decision, ESG, Innovation ability, Management tone manipulation

Divisions

deptmarketing

Publication Title

International Review of Financial Analysis

Volume

95

Issue

C

Publisher

Elsevier

Publisher Location

STE 800, 230 PARK AVE, NEW YORK, NY 10169 USA

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