Economic policy uncertainty and firm green commitment

As coercive regulatory control amplifies, environmental responsibility is one of the most important dimensions in stakeholder demands for corporate social responsibilities. This study interprets green commitments as the approach adopted by firms to seek environmental legitimacy and stakeholder recognition in situations of high environmental uncertainty in the external environment. Then, this study delves into the effects of economic policy uncertainty (EPU) on firm-level green commitment using data of 1914 firms in the A-share market. Specifically, the evidence illustrates that: (1) EPU has a significant positive effect on firm green commitment; (2) R&D investment has a partial intermediary effect between EPU and firm-level green commitments; (3) EPU has a stronger impact on green commitments for non-SOE, manufacturing, and non-heavily polluting firms than others; and (4) positive commitments under uncertainties can improve firm resilience in swaths of economic output, supply chain financing, and debt accessibility.