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Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China
Using a 2005–2020 sample of A-share listed companies in China’s heavily polluting industries, this paper divides environmental investment strategies into “light green,” “medium green,” and “deep green” dimensions and constructs a panel threshold model to investigate the impact of different environme...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer Berlin Heidelberg
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10044087/ https://www.ncbi.nlm.nih.gov/pubmed/36977868 http://dx.doi.org/10.1007/s11356-023-26428-0 |
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author | Cheng, Hongwei Feng, Yi |
author_facet | Cheng, Hongwei Feng, Yi |
author_sort | Cheng, Hongwei |
collection | PubMed |
description | Using a 2005–2020 sample of A-share listed companies in China’s heavily polluting industries, this paper divides environmental investment strategies into “light green,” “medium green,” and “deep green” dimensions and constructs a panel threshold model to investigate the impact of different environmental strategies on China’s stock market. The study found that environmental investment intensity has a double threshold effect on stock returns, “medium green” behavior helps improve stock returns, and “light green” and “deep green” behaviors are not conducive to stock returns. Institutional investors are more accurate than ordinary investors in identifying heterogeneous environmental strategies. The mechanism test shows that different environmental strategies affect stock returns through internal “value enhancement” and external “government subsidy” mechanisms. Moreover, “greenwashing” benefits for companies are short-lived; the market eventually imposes punitive pricing. These findings provide a reference for enterprise- and market-oriented green development systems. |
format | Online Article Text |
id | pubmed-10044087 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Springer Berlin Heidelberg |
record_format | MEDLINE/PubMed |
spelling | pubmed-100440872023-03-28 Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China Cheng, Hongwei Feng, Yi Environ Sci Pollut Res Int Research Article Using a 2005–2020 sample of A-share listed companies in China’s heavily polluting industries, this paper divides environmental investment strategies into “light green,” “medium green,” and “deep green” dimensions and constructs a panel threshold model to investigate the impact of different environmental strategies on China’s stock market. The study found that environmental investment intensity has a double threshold effect on stock returns, “medium green” behavior helps improve stock returns, and “light green” and “deep green” behaviors are not conducive to stock returns. Institutional investors are more accurate than ordinary investors in identifying heterogeneous environmental strategies. The mechanism test shows that different environmental strategies affect stock returns through internal “value enhancement” and external “government subsidy” mechanisms. Moreover, “greenwashing” benefits for companies are short-lived; the market eventually imposes punitive pricing. These findings provide a reference for enterprise- and market-oriented green development systems. Springer Berlin Heidelberg 2023-03-28 2023 /pmc/articles/PMC10044087/ /pubmed/36977868 http://dx.doi.org/10.1007/s11356-023-26428-0 Text en © The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2023, Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Research Article Cheng, Hongwei Feng, Yi Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China |
title | Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China |
title_full | Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China |
title_fullStr | Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China |
title_full_unstemmed | Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China |
title_short | Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China |
title_sort | can capital markets identify heterogeneous environmental investment strategies of firms? evidence from china |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10044087/ https://www.ncbi.nlm.nih.gov/pubmed/36977868 http://dx.doi.org/10.1007/s11356-023-26428-0 |
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