Public environmental concern and enterprise environmental protection investment: from the perspective of enterprise life cycle

In the information era, effective environmental protection cannot be achieved without public concern. In this paper, public environmental concern (PEC) is subdivided into public concern about environmental pollution (PCEP), environmental regulations (PCER), and green behavior (PCGB). Based on the data set of the listed companies in China from 2011 to 2019 and the Baidu Index, we examine the influence of the three types of PECs on enterprises' environmental protection investment (EPI) in their different stages of the enterprise life cycle. It was found that three types of PECs have a significant impact on EPI, with PCER having the greatest effect. The impact of PEC varies at stages of the enterprise life cycle, and only in the growth stage, the three kinds of PECs play a significant role in promoting enterprises' EPI, while not in the maturity and the decline stages. Heterogeneity analysis shows that this positive effect is only significant for enterprises without ISO14001 certification and those in western China; PCER can significantly promote capitalized environmental investment, while PCEP can significantly promote expensed environmental investment. The findings can help to clarify the key role of the public in supervising the enterprises' environmental protection behavior and provide a decision-making basis for enterprises to dynamically adjust their environmental investment strategies in the whole life cycle.