Little is known about the effects of green performance on corporate insolvency risk. This study examines the relationship between green performance and firm insolvency risk from both theoretical and empirical perspectives. Using a panel of 179 US firms included in the Newsweek Green Rankings and a system generalised method of moments estimation which generates endogeneity-robust regression coefficients, we found that firms with higher green performance are at lower risk of insolvency. We further postulate and provide theory-based empirical evidence that the nexus between green performance and insolvency risk is contingent upon other internal and external boundary conditions. Specifically, this research documents that the nexus between green performance and firm insolvency risk is moderated by market power as well as industry competitive intensity. The results of this study are robust across several sensitivity analyses.

关于绿色绩效对企业破产风险的影响知之甚少。本研究从理论和实证角度考察了绿色绩效与企业破产风险之间的关系。使用包含在新闻周刊绿色排名中的 179 家美国公司的面板和产生内生性稳健回归系数的系统广义矩估计方法，我们发现绿色绩效较高的公司破产风险较低。我们进一步假设并提供基于理论的经验证据，表明绿色绩效与破产风险之间的关系取决于其他内部和外部边界条件。具体而言，本研究表明，绿色绩效与企业破产风险之间的关系受到市场力量和行业竞争强度的调节。