Corporate environmental performance, governance and financing decisions: Empirical evidence from France

This study examined the impact of corporate environmental performance and its specific areas, namely emission reduction, resource use and environmental innovation, on firm financing decisions. We used the System Generalised Method of Moments (GMM) to analyse data from French firms listed on the SBF1...

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Main Author: Sonia Boukattaya
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Environmental Challenges
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2667010025000885
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author Sonia Boukattaya
author_facet Sonia Boukattaya
author_sort Sonia Boukattaya
collection DOAJ
description This study examined the impact of corporate environmental performance and its specific areas, namely emission reduction, resource use and environmental innovation, on firm financing decisions. We used the System Generalised Method of Moments (GMM) to analyse data from French firms listed on the SBF120 index between 2010 and 2019. Our findings indicate that corporate environmental performance is positively associated with debt financing. Additionally, each environmental dimension influences debt use in distinct ways. Finally, good corporate governance strengthens the positive relationship between environmental performance and debt financing. Our results are robust across different financing measures and subsample analyses. This study provides new insights into the corporate governance-environmental performance nexus, offering important managerial and policy implications.
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spelling doaj-art-60ffa181f2ce47e89cb0dd5b5a2b450c2025-08-20T02:19:51ZengElsevierEnvironmental Challenges2667-01002025-06-011910116910.1016/j.envc.2025.101169Corporate environmental performance, governance and financing decisions: Empirical evidence from FranceSonia Boukattaya0GEF2A Lab, ISG Tunis, University of Tunis, Tunis, TunisiaThis study examined the impact of corporate environmental performance and its specific areas, namely emission reduction, resource use and environmental innovation, on firm financing decisions. We used the System Generalised Method of Moments (GMM) to analyse data from French firms listed on the SBF120 index between 2010 and 2019. Our findings indicate that corporate environmental performance is positively associated with debt financing. Additionally, each environmental dimension influences debt use in distinct ways. Finally, good corporate governance strengthens the positive relationship between environmental performance and debt financing. Our results are robust across different financing measures and subsample analyses. This study provides new insights into the corporate governance-environmental performance nexus, offering important managerial and policy implications.http://www.sciencedirect.com/science/article/pii/S2667010025000885Emissions reductionResource useEnvironmental innovationEnvironmentally sensitive industriesCapital structure
spellingShingle Sonia Boukattaya
Corporate environmental performance, governance and financing decisions: Empirical evidence from France
Environmental Challenges
Emissions reduction
Resource use
Environmental innovation
Environmentally sensitive industries
Capital structure
title Corporate environmental performance, governance and financing decisions: Empirical evidence from France
title_full Corporate environmental performance, governance and financing decisions: Empirical evidence from France
title_fullStr Corporate environmental performance, governance and financing decisions: Empirical evidence from France
title_full_unstemmed Corporate environmental performance, governance and financing decisions: Empirical evidence from France
title_short Corporate environmental performance, governance and financing decisions: Empirical evidence from France
title_sort corporate environmental performance governance and financing decisions empirical evidence from france
topic Emissions reduction
Resource use
Environmental innovation
Environmentally sensitive industries
Capital structure
url http://www.sciencedirect.com/science/article/pii/S2667010025000885
work_keys_str_mv AT soniaboukattaya corporateenvironmentalperformancegovernanceandfinancingdecisionsempiricalevidencefromfrance