The Impact of Corporate Sustainable Development Goals Adoption on Corporate Investment
International Evidence
Bibliographic Data
| ID | 12306974 |
|---|---|
| Authors | Kaouther Chebbi (0000-0002-3338-2047, Finance Department, School of Business King Faisal University Al‐Ahsa Saudi Arabia, corresponding author) |
| Year | 2026 |
| Publication date | 2026-03-09 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Sustainable Development (JOURNAL) |
| Journal identifiers | ISSN: 0968-0802 • E-ISSN: 1099-1719 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/sd.70929 |
| OpenAlex | W7134844028 |
| Language | EN |
| References cited | 37 |
This study investigates the relationship between sustainable development goal (SDG) engagement and corporate capital expenditures using 37,098 firm‐year observations from 6243 firms across 90 countries from 2016 to 2024. Grounded in stakeholder theory and the resource‐based view, we develop and test hypotheses regarding how sustainability commitments influence corporate investment decisions. We operationalize SDG engagement through complementary measures: a PCA‐based index capturing sustainability intensity and an average SDG score representing breadth of adoption. Using a two‐way high‐dimensional fixed‐effects regression approach, we find that both measures are positively and significantly associated with capital expenditure intensity. The governance pillar of SDGs has the strongest impact on capital expenditures, followed by environmental and social factors. These findings remain robust across different model specifications, endogeneity adjustments, and sample stratifications. Our study contributes to the literature by providing empirical evidence on the SDG‐investment nexus and offers insights for regulators, investors, and companies managing sustainability transitions
Capital expenditure · Corporate governance · Endogeneity · Nexus (standard · Operationalization · Sample (material · Stakeholder engagement · Sustainability · Sustainability reporting · Sustainable development · Community Development and Social Impact · Corporate Social Responsibility Reporting · Sustainable Finance and Green Bonds
Stakeholder Theory
The cornerstones of competitive advantage
Addressing the SDGs in sustainability reports
Firm Resources and Sustained Competitive Advantage
Sustainable development goals and corporate financial performance
Sustainable Finance and Sustainable Development Goals
From Climate Finance to Sustainable Development
Empowering Sustainable Production
| Highly cited | No |
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