The effect of environmental management and financial constraints on performance of the listed companies in China
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Abstract
This research article aimed to (1) examine the impact of environmental management on the financial performance of publicly listed companies in the People's Republic of China, and (2) investigate the role of financial constraints in moderating the relationship between environmental management and financial performance. The population included 17,884 publicly listed companies in China. Data collection employed a data recording form that categorized information into general company data, environmental management, and financial performance. Descriptive statistics, including means, percentages, and standard deviations, were employed for data analysis, alongside hypothesis testing using Stepwise Multiple Regression.
The results show that environmental management (Environment Performance) had a positive effect on the rate of return on assets with statistical significance at the .05 level. Financial constraints had a negative effect on the return on assets with statistical significance at the .05 level. In addition, the interaction between financial constraints and environmental management It had a negative effect on the rate of return on assets with statistical significance at the .05 level. The results of this research suggest that financial constraints hinder the ability of environmental management to fully improve financial performance.
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