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Corporate environmental responsibility and financial constraints for unlisted SMEs

Year: 2025

Type: article

Abstract: In this paper, we examine the impact of corporate environmental responsibility on financial constraints among 16,275 unlisted small and medium-sized enterprises across 30 countries in Eastern Europe and Central Asia. We also assess how country-level economic, financial, and institutional development moderates the relationship between CER and financial constraints. Our findings reveal that SMEs demonstrating strong environmental responsibility face fewer financial constraints than their conventional counterparts. Moreover, the positive effect of superior CER performance on alleviating financial constraints is more pronounced in countries with higher levels of economic, financial, and institutional development.

Source: Global Finance Journal

DOI: 10.1016/j.gfj.2025.101176

Author: Barkat Ullah

Institution: Morgan State University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,860