Impact of Firm’s ESG Commitments on Investment Efficacy The Moderating Role of Firm’s Life Cycle
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Date
2024
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UMT, Lahore
Abstract
Following the financial crisis of 2007-08, the global economy has experienced a dynamic change, leading to an increased emphasis on investment opportunities for businesses. The firm's investment efficiency, which refers to the reduction in investment inefficiency, has significantly contributed to the selection of investment opportunities and enhanced the firm's liquidity and profitability. In connection, the prior literature has identified two primary factors that limit the achievement of investment efficiency or hinder the resolution of investment inefficiency: financial constraints and asymmetric information. Therefore, enterprises should implement procedures and techniques that enhance investor trust and overcome investment inefficiency, including under and overinvestment problems.