Corporate Competing Culture and Environmental Investment

Abstract

Using Chinese listed companies as research setting, this paper constructs a measure of corporate competing culture through textual analysis on firms’ management discussion and analysis (MD&A) disclosures, and examines the impact of corporate competing culture on environmental investment. The results show that competing culture has a significant and positive impact on firms’ environmental investment, and the results remain robust to a battery of robustness tests. Moreover, the mediating analysis indicates that competing culture promotes corporate environmental investment through enhancing firms’ internal control quality. Furthermore, the heterogeneity results show that the positive impact of corporate competing culture on environmental investment is more pronounced in firms with larger size, stronger corporate governance, in high-polluting industry, and located in less developed regions. Our findings shed light on the importance of corporate competing culture and provide practical implications for corporate sustainable development.

Climate risk and precautionary cash holdings: Evidence from Chinese listed companies

“…For example, the Wenchuan earthquake in 2008, the torrential rain in Beijing in 2012, the Typhoon Lichma in 2019 and the torrential rain in Henan in 2021 directly caused economic losses of 845.14 billion yuan, 11.64 billion yuan, 51.53 billion yuan and 114.269 billion yuan respectively. Moreover, as the largest carbon emitter globally, how to deal with the transformation risk is a major issue which is widely concerned by government, companies and the public (Tian et al, 2022a;Liu et al, 2022;Zhai et al, 2022). Therefore, this study is pioneering, which enriches research on precautionary cash holdings strategy adopted by Chinese listed companies to deal with climate risk.…”

Implications of global carbon governance for corporate carbon emissions reduction

“…Previous research found that board independence (Liao et al, 2015;Post et al, 2015), board gender diversity (Glass et al, 2016;Atif et al, 2021), and Chief Executive Officer (CEO)'s experience and personality (Walls and Berrone, 2017;Arena et al, 2018) may affect the corporate carbon emissions reduction activities. Recent studies have also found that the board's Frontiers in Environmental Science frontiersin.org environmental orientation is helpful to increase environmentalrelated investment and effectively reduce carbon emissions (Dixon-Fowler et al, 2017;Moussa et al, 2020;Tian et al, 2021). In addition, shareholders and other stakeholders need to pay more attention to the disclosure of corporate carbon information (Matsumura et al, 2014).…”

Tax equity, green innovation and corporate sustainable development

“…Second, firms that engage in green innovation can benefit from a reduced cost of compliance with government environmental regulations (Hart, 1995b). Third, green innovation can help firms improve their market position (Mirata and Emtairah, 2005;Bernauer et al, 2007;Tian et al, 2021). Fourth, green innovation can enhance firms' environmental reputation (Eiadat et al, 2008).…”