Abstract
The issue of global warming is now on the agenda of all national governments. It is essential to understand the extent of the possible consequences of this scourge, which threatens all territories without exception. The growing need to curb global warming requires companies to adopt specific measures that can ultimately affect both their income statement and their public image. This research seeks to provide decision makers with valuable information that can guide policies aimed at mitigating climate change without damaging private investment. First, data envelopment analysis (DEA) is used to determine the efficiency of investments in research and development (R&D) made by the most innovative European companies. Second, a multilevel regression (MR) is run to analyse the impact that environmental policies, the business context and the efficiency of innovation exert on market capitalisation. The analysis focuses solely on European territory in 2019. The results reveal a pattern of behaviour by the countries and industries whose R&D spending has enabled them to optimise their output. In addition, the study identifies environmental measures that boost companies' share price, along with innovation, business confidence and the lifting of restrictions on foreign investment.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
