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Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis
This paper investigates the consequences of the COVID-19 crisis on firms’ performance and financial vulnerability. Exploiting longitudinal firm-level data from the World Bank’s “Enterprise Surveys follow-up on COVID-19” for 20 European countries, we assess whether green management quality and pre-pa...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer US
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10113997/ http://dx.doi.org/10.1007/s11187-023-00759-1 |
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author | Aristei, David Gallo, Manuela |
author_facet | Aristei, David Gallo, Manuela |
author_sort | Aristei, David |
collection | PubMed |
description | This paper investigates the consequences of the COVID-19 crisis on firms’ performance and financial vulnerability. Exploiting longitudinal firm-level data from the World Bank’s “Enterprise Surveys follow-up on COVID-19” for 20 European countries, we assess whether green management quality and pre-pandemic credit access difficulties affect firms’ ability to withstand the negative impact of the pandemic. Our results indicate that green firms are more resilient to the pandemic shock. In particular, the likelihood of pandemic-induced drops in sales and liquidity significantly decreases as the quality of green management improves. Conversely, prior financing constraints strongly exacerbate the pandemic’s impact on firms’ performance and amplify liquidity stress and financing problems. Credit-constrained enterprises are not only more likely to experience liquidity shortages and repayment problems, but they also face higher difficulties in accessing bank financing. The COVID-19 crisis has also hampered the beneficial role that green management exerted on access to credit in the pre-pandemic period. During the pandemic, firms with sound environmental management practices do not benefit from improved access to finance and have a lower demand for credit, possibly suggesting a slowdown in their green investment activities. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s11187-023-00759-1. |
format | Online Article Text |
id | pubmed-10113997 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Springer US |
record_format | MEDLINE/PubMed |
spelling | pubmed-101139972023-04-20 Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis Aristei, David Gallo, Manuela Small Bus Econ Article This paper investigates the consequences of the COVID-19 crisis on firms’ performance and financial vulnerability. Exploiting longitudinal firm-level data from the World Bank’s “Enterprise Surveys follow-up on COVID-19” for 20 European countries, we assess whether green management quality and pre-pandemic credit access difficulties affect firms’ ability to withstand the negative impact of the pandemic. Our results indicate that green firms are more resilient to the pandemic shock. In particular, the likelihood of pandemic-induced drops in sales and liquidity significantly decreases as the quality of green management improves. Conversely, prior financing constraints strongly exacerbate the pandemic’s impact on firms’ performance and amplify liquidity stress and financing problems. Credit-constrained enterprises are not only more likely to experience liquidity shortages and repayment problems, but they also face higher difficulties in accessing bank financing. The COVID-19 crisis has also hampered the beneficial role that green management exerted on access to credit in the pre-pandemic period. During the pandemic, firms with sound environmental management practices do not benefit from improved access to finance and have a lower demand for credit, possibly suggesting a slowdown in their green investment activities. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s11187-023-00759-1. Springer US 2023-04-19 /pmc/articles/PMC10113997/ http://dx.doi.org/10.1007/s11187-023-00759-1 Text en © The Author(s) 2023 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) . |
spellingShingle | Article Aristei, David Gallo, Manuela Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis |
title | Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis |
title_full | Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis |
title_fullStr | Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis |
title_full_unstemmed | Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis |
title_short | Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis |
title_sort | green management, access to credit, and firms’ vulnerability to the covid-19 crisis |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10113997/ http://dx.doi.org/10.1007/s11187-023-00759-1 |
work_keys_str_mv | AT aristeidavid greenmanagementaccesstocreditandfirmsvulnerabilitytothecovid19crisis AT gallomanuela greenmanagementaccesstocreditandfirmsvulnerabilitytothecovid19crisis |