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Environmental regulation, intelligent manufacturing and corporate investment & financing: Evidence from industrial robot investment

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  • Li, Zhensheng
  • Zhu, Junpeng
  • Wang, Shuqiong

Abstract

Industrial robots, as a core technology and essential tool in intelligent manufacturing, have brought about a new transformation in industrial production patterns. China is at a critical juncture in its green transition and urgently needs to increase investments in industrial robots. Based on the policy shock provided by implementing the Clean Air Action in 2013, we construct a quasi-natural experiment to assess the impact of escalating environmental policies on industrial robot investment. The results indicate that the stringent regulation significantly inhibited high-pollution enterprises from adopting industrial robots. Mechanism analysis reveals that the obstacle to corporate investment is the reason for the suppression of industrial robot installation. Compared to equity financing, constraints from debt financing are the primary channel inhibiting investment. Furthermore, factors such as corporate ownership and industry concentration also play a moderating role in the policy effect. The findings of this paper provide insights for supporting policies aimed at sustainable development.

Suggested Citation

  • Li, Zhensheng & Zhu, Junpeng & Wang, Shuqiong, 2024. "Environmental regulation, intelligent manufacturing and corporate investment & financing: Evidence from industrial robot investment," Pacific-Basin Finance Journal, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:pacfin:v:87:y:2024:i:c:s0927538x24002294
    DOI: 10.1016/j.pacfin.2024.102477
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    More about this item

    Keywords

    Environmental regulation; Industrial robots; Listed firms; Policy evaluation; Mechanism analysis;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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