Does firm-level exposure to climate change influence inward foreign direct investment? Revealing the moderating role of ESG performance

IF 8.3 2区管理学 Q1 BUSINESS

Corporate Social Responsibility and Environmental Management Pub Date : 2024-07-19 DOI:10.1002/csr.2917

Lingli Qing, Abd Alwahed Dagestani, Eun-Young Nam, Chengqi Wang

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引用次数: 0

Abstract

The impact of climate change on foreign direct investment (FDI) at the corporate level is insufficiently explored, despite extensive discussions on environmental protection. This research utilizes novel panel data (2009–2022) on Chinese A-share listed firms, using a two-way fixed-effect estimator to probe whether and how a firm's exposure to climate change influences the inflow of FDI, while considering the moderating role of environmental, social, and governance (ESG). The results show: (i) firm-level exposure to climate change harms inward FDI inflow; (ii) host country firms can mitigate the negative effect of exposure to climate change on inward FDI inflow by strengthening their ESG performance; (iii) exposure to climate change primarily impacts FDI inflow through environmental taxes and green investments; (iv) the detrimental effect of climate change risk on incoming FDI is more pronounced in the central and eastern region of China, and among non-state-owned firms. These findings provide insightful theoretical and practical implications for addressing SDG 13 (Climate Action) challenges and for attracting multinational investments in developing countries like China.

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公司层面的气候变化风险会影响外来直接投资吗？揭示环境、社会和公司治理绩效的调节作用

尽管对环境保护问题进行了广泛讨论，但气候变化在企业层面对外国直接投资（FDI）的影响还没有得到充分探讨。本研究利用中国 A 股上市公司的最新面板数据（2009-2022 年），采用双向固定效应估计法，在考虑环境、社会和治理（ESG）调节作用的同时，探究企业的气候变化暴露是否以及如何影响外国直接投资的流入。结果表明：（i）企业层面的气候变化风险会损害外商直接投资的流入；（ii）东道国企业可以通过加强其环境、社会和治理绩效来缓解气候变化风险对外商直接投资流入的负面影响；（iii）气候变化风险主要通过环境税和绿色投资影响外商直接投资的流入；（iv）气候变化风险对外商直接投资流入的不利影响在中国中东部地区和非国有企业中更为明显。这些发现为应对可持续发展目标 13（气候行动）的挑战和吸引跨国公司在中国等发展中国家投资提供了深刻的理论和实践意义。

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

Corporate Social Responsibility and Environmental Management Multiple-

CiteScore

17.20

自引率

16.30%

发文量

189

期刊介绍： Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas. The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.