Environmental performance and firm financing during COVID-19 outbreaks: evidence from SMEs

Nirosha Hewa Wellalage; Vijay Kumar; Ahmed Imran Hunjra; Mamdouh Abdulaziz Saleh Al-Faryan

doi:10.1016/j.frl.2021.102568

Environmental performance and firm financing during COVID-19 outbreaks: evidence from SMEs

Nirosha Hewa Wellalage
, Vijay Kumar
, Ahmed Imran Hunjra^*
, Mamdouh Abdulaziz Saleh Al-Faryan

^*Corresponding author for this work

University of Portsmouth

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

Abstract

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.

Original language	English
Article number	102568
Number of pages	8
Journal	Finance Research Letters
Volume	47
Issue number	Part A
Early online date	18 Nov 2021
DOIs	https://doi.org/10.1016/j.frl.2021.102568
Publication status	Published - 6 Jun 2022

UN SDGs

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

SDG 3 Good Health and Well-being
SDG 9 Industry, Innovation, and Infrastructure
SDG 10 Reduced Inequalities

Keywords

COVID-19
environmental performance
environmental regulations
firm financing
small and medium enterprises (SMEs)

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10.1016/j.frl.2021.102568

Cite this

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title = "Environmental performance and firm financing during COVID-19 outbreaks: evidence from SMEs",

abstract = "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.",

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AU - Wellalage, Nirosha Hewa

AU - Kumar, Vijay

AU - Hunjra, Ahmed Imran

AU - Al-Faryan, Mamdouh Abdulaziz Saleh

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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.

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KW - environmental regulations

KW - firm financing

KW - small and medium enterprises (SMEs)

UR - https://www.scopus.com/pages/publications/85119625921

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DO - 10.1016/j.frl.2021.102568

M3 - Article

AN - SCOPUS:85119625921

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M1 - 102568

ER -

Environmental performance and firm financing during COVID-19 outbreaks: evidence from SMEs

Abstract

UN SDGs

Keywords

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