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Energy intensity constraints and corporate investment strategies: Evidence from Chinese listed enterprises

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  • Ge, Tao
  • Hao, Zixuan
  • Chen, Yuan
  • Chen, Zhanbo

Abstract

This study theoretically analyzes and empirically tests the impact and mechanism of energy intensity constraints on corporate investment strategies. The results find that energy intensity constraints significantly increase corporate green investment, particularly in front-prevention investment. Heterogeneity analysis indicates that the optimization effect of energy intensity constraints on corporate investment strategies is stronger in state-owned enterprises and high energy-consuming industries. Mechanism analysis reveals that energy intensity constraints optimize corporate investment strategies by increasing policy incentives and policy restraints. The findings provide important implications for policymakers to promote corporate sustainability and potential directions for future related research.

Suggested Citation

  • Ge, Tao & Hao, Zixuan & Chen, Yuan & Chen, Zhanbo, 2024. "Energy intensity constraints and corporate investment strategies: Evidence from Chinese listed enterprises," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004963
    DOI: 10.1016/j.frl.2024.105466
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    More about this item

    Keywords

    Energy intensity constraints; Corporate investment strategies; Front-prevention investment; End-treatment investment; Corporate sustainability;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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