The Dynamic Impact of Corporate Environmental Responsibility on Corporate Value

This paper investigates the effect of corporate environmental responsibility (CER) on firm value, employing data from Chinese A-share listed firms over the period from 2009 to 2022. The findings reveal a significant U-shaped nonlinear relationship between CER and firm value, with results robust across a series of robustness tests. Mediation analysis indicate that CER enhances firm value by alleviating financing constraints and reducing firm costs, while the mediation effect of human capital is not significant. Furthermore, the effect is more pronounced for firms in eastern and central China, non-state-owned enterprises, and those in non-high-pollution industries.