Abstract
This paper explores the impact of environmental practices on firm financial distress during the COVID‐19 pandemic in both emerging and developed countries. Analysing a sample of 12,181 firm observations from 2016 to 2021, our results indicate that adopting of environmental practices leads to reduced financial distress and more crisis‐resilient economies. The mitigating effect of environmental practices is more pronounced in developed countries. This study provides crucial implications for governments and policymakers, emphasizing the importance of encouraging firms to adopt environmental practices to reduce the likelihood of default.
| Original language | English |
|---|---|
| Journal | Business Strategy and the Environment |
| Early online date | 8 Aug 2024 |
| DOIs | |
| Publication status | E-pub ahead of print - 8 Aug 2024 |
Bibliographical note
Copyright © 2024 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.Keywords
- COVID-19 pandemic
- bankruptcy
- environmental practices
- financial distress