TY - JOUR
T1 - Environmental performance and firm financing during COVID-19 outbreaks
T2 - evidence from SMEs
AU - Wellalage, Nirosha Hewa
AU - Kumar, Vijay
AU - Hunjra, Ahmed Imran
AU - Al-Faryan, Mamdouh Abdulaziz Saleh
N1 - Publisher Copyright:
© 2021 Elsevier Inc.
PY - 2022/6/6
Y1 - 2022/6/6
N2 - The COVID-19 pandemic has resulted in substantial constraints for small and medium enterprises (SMEs) worldwide. The techniques in which SMEs handle recent crises and the degree to which environmental performance is advantageous when the marketplace experiences an adverse shock is fairly untouched in the literature. To assess this probability, we examine, using data from 6,597 SMEs in 13 developing countries, the effect of firm environmental efficiency on firm financing during the COVID-19 outbreak. We consider three aspects of external financing – bank, non-bank and trade credit – and suggest that it pays for firms to show devotion to environmental obligations in a global pandemic. Our research implies that the trust between a firm and its stakeholders, if it is based on environmental performance, pays off during periods of shock and adversity.
AB - The COVID-19 pandemic has resulted in substantial constraints for small and medium enterprises (SMEs) worldwide. The techniques in which SMEs handle recent crises and the degree to which environmental performance is advantageous when the marketplace experiences an adverse shock is fairly untouched in the literature. To assess this probability, we examine, using data from 6,597 SMEs in 13 developing countries, the effect of firm environmental efficiency on firm financing during the COVID-19 outbreak. We consider three aspects of external financing – bank, non-bank and trade credit – and suggest that it pays for firms to show devotion to environmental obligations in a global pandemic. Our research implies that the trust between a firm and its stakeholders, if it is based on environmental performance, pays off during periods of shock and adversity.
KW - COVID-19
KW - environmental performance
KW - environmental regulations
KW - firm financing
KW - small and medium enterprises (SMEs)
UR - http://www.scopus.com/inward/record.url?scp=85119625921&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2021.102568
DO - 10.1016/j.frl.2021.102568
M3 - Article
AN - SCOPUS:85119625921
SN - 1544-6123
VL - 47
JO - Finance Research Letters
JF - Finance Research Letters
IS - Part A
M1 - 102568
ER -