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Can borrowing constraints enhance environmental sustainability? An alternative parametric approach.
- Source :
- Business Strategy & the Environment (John Wiley & Sons, Inc); May2024, Vol. 33 Issue 4, p2683-2693, 11p
- Publication Year :
- 2024
-
Abstract
- The paper explores how restrictions of credit affect the turning point of the non‐linear relationship between financial performance and the environmental sustainability of manufacturing firms in India. Our results are in support of the inverted U‐shaped relationship between financial performance and environmental sustainability. The study builds upon an alternative long‐run specification, which avoids the non‐linear transformations of potentially non‐stationary regressors in panel estimation and finds evidence that the higher the firm's degree of credit constraints, the lower is its financial performance at the turning point, indicating the different finance‐sustainability paths across firms due to credit frictions. We also investigate the aforementioned relationship by considering the exporting potential of the firms. [ABSTRACT FROM AUTHOR]
- Subjects :
- FINANCIAL performance
SUSTAINABILITY
EXPORT trading companies
Subjects
Details
- Language :
- English
- ISSN :
- 09644733
- Volume :
- 33
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Business Strategy & the Environment (John Wiley & Sons, Inc)
- Publication Type :
- Academic Journal
- Accession number :
- 176989070
- Full Text :
- https://doi.org/10.1002/bse.3622