Does air pollution impair investment efficiency?
Guanming He, Tiantian Lin
Abstract
Using a sample of 2174 Chinese listed firms for the period 2014–2019, we examine whether air pollution impairs investment efficiency of firms. We find robust evidence that air pollution is negatively associated with firms’ investment efficiency, and that this association is more pronounced for small firms, non-state-owned firms, financially constrained firms, and firms confronted with high business risk or intense industrial product market competition.
Topics & Concepts
Investment (military)Sample (material)BusinessCompetition (biology)PollutionAir pollutionProduct marketMonetary economicsIndustrial organizationEconomicsMarket economyBiologyChromatographyIncentivePolitical scienceEcologyLawOrganic chemistryChemistryPoliticsAir Quality and Health ImpactsEnergy, Environment, Economic GrowthEnergy, Environment, and Transportation Policies