articleInternational Review of Economics & FinanceJan 20, 2026GOLD OA

Do environmental regulations affect corporate investment preferences? Institutional considerations based on fiscal decentralization

Shandong University of Finance and Economics · North University of China

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Abstract

Environmental regulation( Er ) structurally shapes enterprise investment strategies under China's fiscal decentralization( Fd ) system. Employing dynamic panel data from 2008-2022 listed industrial firms, this study focuses on three aspects: (1) Developing a tripartite framework to reveal how Er amplifies technology investments( Ti ) and financial investments( Fi ), while suppressing productive investments( Pi ) through executive risk preferences and environmental concerns; (2) Higher Fd diminishes the promotion effects of Er on Ti and Fi, and alleviates its constraints on Pi ; (3)Market-oriented E r influence all three investment types,whereas command-based Er only affect Ti ; (4) Heterogeneous effects covers…

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6
total citations
FWCI
257.64
Percentile
100%
References
70
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Authors

4

Topics & keywords

Keywords
  • Decentralization
  • Corporate governance
  • Investment (military)
  • Panel data
  • Investment decisions
  • Capital market
  • Resource (disambiguation)
  • Promotion (chess)
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