Impact of air pollution on corporate investment: New empirical evidence from BRICS

Farooq, Umar; Ashfaq, Khurram; Rustamovna, Rustamova Dilbar; Al-Naimi., Ahmad A.

doi:10.1016/j.bir.2023.03.004

Cited by 14 publications

(3 citation statements)

References 45 publications

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“…Moreover, if pollutionrelated compensations do not align with employees' expectations, it could lead to a talent exodus, adversely impacting firm productivity [27]. On the investment and financing front, investors tend to be cautious about backing firms in high-pollution areas to mitigate investment risks [28], leading to more challenging financing conditions for these firms and negatively influencing their productivity. In essence, air pollution can engender a detrimental cycle impeding corporate progress: the worse the urban air quality, the lower the CTFP.…”

Section: Air Pollution and Ctfpmentioning

confidence: 99%

“…Numerous studies have demonstrated that air pollution profoundly impacts the extent of the financial constraints faced by businesses. Through a cost management lens, Farooq et al [28] applied a Generalized Method of Moments (GMM) model to assess how air pollution affects the investment behaviors of non-financial firms in BRICS countries. They found that increased air pollution leads to heightened compliance costs, which in turn impose financial restrictions on investment endeavors, thereby limiting firms' capacity for risk-taking.…”

Section: H2(a) Air Pollution Leads To Increased Public Environmental ...mentioning

confidence: 99%

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Impact of Urban Air Quality on Total Factor Productivity: Empirical Insights from Chinese Listed Companies

Ding,

Wang,

Jiang

et al. 2024

Sustainability

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Urban air quality is inextricably linked to the operations of micro-firms. This paper employs the “Qinling-Huaihe” River demarcation as an instrumental variable to construct a regression discontinuity design (RDD) coupled with the two-stage least squares (2SLS) approach. This methodological framework is utilized to investigate the influence of urban air quality on the corporate total factor productivity (CTFP) of publicly listed manufacturing firms from 2015 to 2020. Drawing on the broken windows theory of urban decay and the general equilibrium theory, this research elucidates a significant adverse effect of urban air pollution on CTFP. We rigorously confirm the validity of the RDD by conducting covariate continuity tests and manipulating distributional variables. Furthermore, the robustness of the baseline regression outcomes is substantiated through a series of sensitivity, robustness, and endogeneity checks, employing alternative instrumental variables. The analysis extends to examining the heterogeneity across environmental attributes, regional features, and green branding. The mechanistic investigation reveals that public environmental concerns, financing constraints, and investments in technological innovation serve as mediators in the nexus between urban air pollution and CTFP. Additionally, it is observed that environmental regulation exerts a positive moderating influence, whereas female leadership has a negative impact in this context. The imperative for timely environmental governance is underscored by these findings, which offer crucial insights for policymakers seeking to refine business environment strategies and for corporations aiming to pursue sustainable growth.

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Section: Air Pollution and Ctfpmentioning

confidence: 99%

Section: H2(a) Air Pollution Leads To Increased Public Environmental ...mentioning

confidence: 99%

Impact of Urban Air Quality on Total Factor Productivity: Empirical Insights from Chinese Listed Companies

Ding,

Wang,

Jiang

et al. 2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…According to the studied literature, there are few research investigations that measure the impact of pollution on investments and capital flow [ 8 ]. In these studies, researchers have usually relied on mathematical tools such as stochastic calculus [ 9 ], random processes, ARIMA time series regression [ 10 ], and GARCH volatility models [ 11 ] to detect the various time-series patterns.…”

Section: Related Workmentioning

confidence: 99%

Green finance growth prediction model based on time-series conditional generative adversarial networks

Abdelhady,

Dahmani,

AbouEl-Magd

et al. 2024

PLoS ONE

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Climate change mitigation necessitates increased investment in green sectors. This study proposes a methodology to predict green finance growth across various countries, aiming to encourage such investments. Our approach leverages time-series Conditional Generative Adversarial Networks (CT-GANs) for data augmentation and Nonlinear Autoregressive Neural Networks (NARNNs) for prediction. The green finance growth predicting model was applied to datasets collected from forty countries across five continents. The Augmented Dickey-Fuller (ADF) test confirmed the non-stationary nature of the data, supporting the use of Nonlinear Autoregressive Neural Networks (NARNNs). CT-GANs were then employed to augment the data for improved prediction accuracy. Results demonstrate the effectiveness of the proposed model. NARNNs trained with CT-GAN augmented data achieved superior performance across all regions, with R-squared (R2) values of 98.8%, 96.6%, and 99% for Europe, Asia, and other countries respectively. While the RMSE for Europe, Asia, and other countries are 1.26e+2, 2.16e+2, and 1.16e+2 respectively. Compared to a baseline NARNN model without augmentation, CT-GAN augmentation significantly improved both R2 and RMSE. The R2 values for the Europe, Asia, and other countries models are 96%, 73%, and 97.2%, respectively. The RMSE values for the Europe, Asia, and various countries models are 2.24e+2, 7e+2, and 2.07e+2, respectively. The Nonlinear Autoregressive Exogenous Neural Network (NARX-NN) exhibited significantly lower performance across Europe, Asia, and other countries with R2 values of 74%, 52%, and 86%, and RMSE values of 1.11e+2, 3.63e+2, and 1.8e+2, respectively.

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Does air pollution affect corporate shareholder responsibility performance?: Analysis of regression discontinuity design based on the "Qinling-Huaihe" line

Ding,

Vukovic,

Shams

et al. 2023

Environ Dev Sustain

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Impact of air pollution on corporate investment: New empirical evidence from BRICS

Cited by 14 publications

References 45 publications

Impact of Urban Air Quality on Total Factor Productivity: Empirical Insights from Chinese Listed Companies

Impact of Urban Air Quality on Total Factor Productivity: Empirical Insights from Chinese Listed Companies

Green finance growth prediction model based on time-series conditional generative adversarial networks

Does air pollution affect corporate shareholder responsibility performance?: Analysis of regression discontinuity design based on the "Qinling-Huaihe" line

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