Environmental regulations and corporate cash holdings

IF 9.4 3区管理学 Q1 BUSINESS, FINANCE

British Accounting Review Pub Date : 2025-09-01 DOI:10.1016/j.bar.2024.101388

Wenrui Chen , Yue Cao , Yizhe Dong , Diandian Ma

引用次数: 0

Abstract

The impact of environmental regulations on corporate performance and decisions has attracted significant attention from academics, practitioners and policymakers. We extend this line of research to examine the impact of regional environmental regulations on firms’ cash holdings. We find that environmental regulations motivate firms to increase cash holdings. Further analyses reveal that firms increase cash holdings due to having less debt financing, decreased sales and more green innovation, all caused by environmental regulations. Under regulatory pressure, firms operating in more competitive industries, facing more financial constraints, having more environmental expenditure and belonging to the secondary sector tend to hold more cash than other firms, while firms with better CSR performance do not maintain as high cash holdings as their counterparts. We further demonstrate that increased cash holdings caused by the imposition of environmental regulations increase firm value.

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环境法规与企业现金持有量

环境法规对企业绩效和决策的影响已经引起了学术界、实践者和决策者的极大关注。我们将这一研究延伸到考察地区环境法规对企业现金持有量的影响。我们发现，环境法规激励企业增加现金持有量。进一步分析表明，企业增加现金持有量的原因是债务融资减少、销售下降和绿色创新增多，而这些都是由环境法规引起的。在监管压力下，竞争更激烈的行业、面临更多的资金约束、环境支出更多、属于第二产业的企业往往比其他企业持有更多的现金，而企业社会责任绩效较好的企业则不会保持较高的现金持有量。我们进一步证明，由于实施环境法规而增加的现金持有量增加了公司价值。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.