Enterprise Groups and Environmental Investment Efficiency: Empirical Evidence from China’s Heavily Polluting Industries

In recent years, guided by the sustainable development strategy and ecological civilization strategy, the concept of green environmental protection has gradually become popular. Increasingly, enterprises are enhancing their environmental investment practices after recognizing the importance of environmental protection. From the perspective of enterprise groups, improving the environmental investment efficiency of enterprises is of great significance for boosting sustainable development and optimizing resource allocation. Based on a research sample of listed companies in China’s heavy pollution industry from 2003 to 2020, this paper theoretically analyzes the impact of enterprise groups on environmental investment efficiency and the corresponding influence mechanisms. This paper finds that enterprise groups play a significantly positive role in promoting environmental investment efficiency. Further research indicates that this improvement primarily stems from two key aspects: On the one hand, the capital market within the enterprise group effectively alleviates the financing constraints in environmental investment. On the other hand, environmental investment efficiency is improved by optimizing innovation resources. In addition, the study identified two important moderating factors: firm executive characteristics and the degree of regional environmental regulation. This research enriches the existing research results regarding organizational management theory and the environmental investment efficiency of enterprises and provides theoretical and empirical references for promoting sustainable socio-economic development and the green transformation of enterprises.