Impact of air pollution on corporate investment: New empirical evidence from BRICS
The current analysis aims to explore the impact of air pollution on corporate investment decisions. The empirical analysis was conducted on non-financial sector enterprises of BRICS economies. We employ the system generalized method of moments (GMM) model to establish the regression among variables....
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-07-01
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| Series: | Borsa Istanbul Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845023000431 |
| _version_ | 1797774829741408256 |
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| author | Umar Farooq Khurram Ashfaq Rustamova Dilbar Rustamovna Ahmad A. Al-Naimi |
| author_facet | Umar Farooq Khurram Ashfaq Rustamova Dilbar Rustamovna Ahmad A. Al-Naimi |
| author_sort | Umar Farooq |
| collection | DOAJ |
| description | The current analysis aims to explore the impact of air pollution on corporate investment decisions. The empirical analysis was conducted on non-financial sector enterprises of BRICS economies. We employ the system generalized method of moments (GMM) model to establish the regression among variables. The statistical analysis reveals the negative and statistically significant impact of air pollution on corporate investment. The underlying logic of the adverse effect is that the high air pollution enhances compliance costs, creates financial constraints to finance investment activities, and augments operation risk, etc. The empirical analysis yields an important policy i.e., ensuring green production activities by corporate managers will not only reduces environmental pollution but will also impede environmental stress. Similarly, policy officials should devise efficient environmental policies that can help in keeping air pollution at the lowest level. This study complements the existing literature by exploring the novel relationship between air pollution and corporate investment. |
| first_indexed | 2024-03-12T22:26:54Z |
| format | Article |
| id | doaj.art-9b3fa54adc814effb6c0921d9b4205a3 |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-03-12T22:26:54Z |
| publishDate | 2023-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-9b3fa54adc814effb6c0921d9b4205a32023-07-22T04:52:07ZengElsevierBorsa Istanbul Review2214-84502023-07-01234876886Impact of air pollution on corporate investment: New empirical evidence from BRICSUmar Farooq0Khurram Ashfaq1Rustamova Dilbar Rustamovna2Ahmad A. Al-Naimi3School of Economics and Finance, Xi'an Jiaotong University, Xi'an, Shaanxi, PR China; Corresponding author.College of Commerce, Government College University, Faisalabad, PakistanDepartment of Social Sciences and Humanities, Tashkent State University of Economics, Tashkent, UzbekistanDepartment of Finance and Banking Sciences, Faculty of Business, Applied Science Private University, JordanThe current analysis aims to explore the impact of air pollution on corporate investment decisions. The empirical analysis was conducted on non-financial sector enterprises of BRICS economies. We employ the system generalized method of moments (GMM) model to establish the regression among variables. The statistical analysis reveals the negative and statistically significant impact of air pollution on corporate investment. The underlying logic of the adverse effect is that the high air pollution enhances compliance costs, creates financial constraints to finance investment activities, and augments operation risk, etc. The empirical analysis yields an important policy i.e., ensuring green production activities by corporate managers will not only reduces environmental pollution but will also impede environmental stress. Similarly, policy officials should devise efficient environmental policies that can help in keeping air pollution at the lowest level. This study complements the existing literature by exploring the novel relationship between air pollution and corporate investment.http://www.sciencedirect.com/science/article/pii/S2214845023000431G31Q53 |
| spellingShingle | Umar Farooq Khurram Ashfaq Rustamova Dilbar Rustamovna Ahmad A. Al-Naimi Impact of air pollution on corporate investment: New empirical evidence from BRICS Borsa Istanbul Review G31 Q53 |
| title | Impact of air pollution on corporate investment: New empirical evidence from BRICS |
| title_full | Impact of air pollution on corporate investment: New empirical evidence from BRICS |
| title_fullStr | Impact of air pollution on corporate investment: New empirical evidence from BRICS |
| title_full_unstemmed | Impact of air pollution on corporate investment: New empirical evidence from BRICS |
| title_short | Impact of air pollution on corporate investment: New empirical evidence from BRICS |
| title_sort | impact of air pollution on corporate investment new empirical evidence from brics |
| topic | G31 Q53 |
| url | http://www.sciencedirect.com/science/article/pii/S2214845023000431 |
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