Do investors care about corporate environmental responsibility engagement?

Khaldoon Albitar; Siming Liu; Khaled Hussainey; Gaoke Liao

doi:10.1504/IJBGE.2023.132079

Do investors care about corporate environmental responsibility engagement?

Khaldoon Albitar, Siming Liu, Khaled Hussainey, Gaoke Liao

Centre for Innovative and Sustainable Finance

Research output: Contribution to journal › Article › peer-review

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Abstract

We aim to investigate the effect of corporate environmental responsibility (CER) engagement on investors’ reactions. We also explore heterogeneity of this impact among different types of companies and different company's market performance. We use panel data models and quantile regression based on data related to firms listed on the A-share China Security Market and the final sample consists of 3776 firm-year observations. The results show that CER engagement has a significant positive impact on investors' investment decisions. Further,
investors are more sensitive to CER engagement of high energy-consumption companies and no matter the company is a state-owned or a non-state-owned, CER engagement has a significant positive impact on investors' reactions. CER engagement has a significant positive impact on investors' reactions in all quantiles except one and the promoting effect increases first and then decreases with the growth of corporate market value from lower to upper quantiles.

Original language	English
Pages (from-to)	393-415
Number of pages	23
Journal	International Journal of Business Governance and Ethics
Volume	17
Issue number	4
Early online date	16 May 2023
DOIs	https://doi.org/10.1504/IJBGE.2023.132079
Publication status	Published - 11 Jul 2023

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 12 Responsible Consumption and Production

Keywords

investor's reaction
corporate environmental responsibility
high energy-consumption
corporate market performance
heterogeneity

Access to Document

10.1504/IJBGE.2023.132079

Do investors care
Khaldoon Albitar, Siming Liu, Khaled Hussainey, and Gaoke Liao, 'Do investors care about corporate environmental responsibility engagement?' International Journal of Business Governance and Ethics 2023 17:4, 393-415.
Accepted author manuscript (Post-print), 445 KB

Cite this

@article{7e187345fce64dc08caf6bf13519e920,

title = "Do investors care about corporate environmental responsibility engagement?",

abstract = "We aim to investigate the effect of corporate environmental responsibility (CER) engagement on investors{\textquoteright} reactions. We also explore heterogeneity of this impact among different types of companies and different company's market performance. We use panel data models and quantile regression based on data related to firms listed on the A-share China Security Market and the final sample consists of 3776 firm-year observations. The results show that CER engagement has a significant positive impact on investors' investment decisions. Further, investors are more sensitive to CER engagement of high energy-consumption companies and no matter the company is a state-owned or a non-state-owned, CER engagement has a significant positive impact on investors' reactions. CER engagement has a significant positive impact on investors' reactions in all quantiles except one and the promoting effect increases first and then decreases with the growth of corporate market value from lower to upper quantiles.",

keywords = "investor's reaction, corporate environmental responsibility, high energy-consumption, corporate market performance, heterogeneity",

author = "Khaldoon Albitar and Siming Liu and Khaled Hussainey and Gaoke Liao",

year = "2023",

month = jul,

day = "11",

doi = "10.1504/IJBGE.2023.132079",

language = "English",

volume = "17",

pages = "393--415",

journal = "International Journal of Business Governance and Ethics",

issn = "1477-9048",