Green management, access to credit, and firms' vulnerability to the COVID-19 crisis.

ABSTRACT: This paper investigates the consequences of the COVID-19 crisis on firms' performance and financial vulnerability. Exploiting longitudinal firm-level data from the World Bank's "Enterprise Surveys follow-up on COVID-19" for 20 European countries, we assess whether green management quality and pre-pandemic credit access difficulties affect firms' ability to withstand the negative impact of the pandemic. Our results indicate that green firms are more resilient to the pandemic shock. In particular, the likelihood of pandemic-induced drops in sales and liquidity significantly decreases as the quality of green management improves. Conversely, prior financing constraints strongly exacerbate the pandemic's impact on firms' performance and amplify liquidity stress and financing problems. Credit-co

SUBMITTER: Aristei D 

PROVIDER: S-EPMC10113997 | biostudies-literature | 2023 Apr

REPOSITORIES: biostudies-literature