Navigating firm financial distress in turbulent times: The impact of the institutional context

Ferdaous Zouaghi; Teresa Garcia‐Marco; Marian Garcia Martinez

doi:10.1002/bse.3917

Navigating firm financial distress in turbulent times: The impact of the institutional context

Ferdaous Zouaghi^*
, Teresa Garcia‐Marco
, Marian Garcia Martinez

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

1 Citation (SciVal)

17 Downloads (Pure)

Abstract

This paper explores the impact of environmental practices on firm financial distress during the COVID‐19 pandemic in both emerging and developed countries. Analysing a sample of 12,181 firm observations from 2016 to 2021, our results indicate that adopting of environmental practices leads to reduced financial distress and more crisis‐resilient economies. The mitigating effect of environmental practices is more pronounced in developed countries. This study provides crucial implications for governments and policymakers, emphasizing the importance of encouraging firms to adopt environmental practices to reduce the likelihood of default.

Original language	English
Pages (from-to)	8037-8054
Number of pages	18
Journal	Business Strategy and the Environment
Volume	33
Issue number	8
Early online date	8 Aug 2024
DOIs	https://doi.org/10.1002/bse.3917
Publication status	Published - Dec 2024

Bibliographical note

Copyright © 2024 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

Funding

The authors gratefully acknowledge the funding received through the PID2020-115018RB-C31 (AEI/FEDER, UE) and TED2021-132446BI00 research projects financed by the Spanish Ministry of Science, Innovation and Universities and Next Generation European funds as well as the PJUPNA2024-11704 research project funded by the Public University of Navarra. Open Access funding provided by Universidad Pública de Navarra.

Funders	Funder number
Spanish Ministry of Science, Innovation and Universities and Next Generation European
Agencia Estatal de Investigación
Federación Española de Enfermedades Raras
Universidad Pública de Navarra
University of the East	TED2021‐132446B‐I00

Keywords

COVID-19 pandemic
bankruptcy
environmental practices
financial distress

Access to Document

10.1002/bse.3917Licence: CC BY 4.0

Bus Strat Env - 2024 - Zouaghi - Navigating firm financial distress in turbulent times The impact of the institutional
Copyright © 2024 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Final published version, 1.47 MBLicence: CC BY 4.0

Cite this

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Navigating firm financial distress in turbulent times: The impact of the institutional context

Abstract

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