Does environmental regulation policy help improve business performance of manufacturing enterprises? evidence from China

Wang, Jie; Chen, Jiakai; Liu, Weizhong

doi:10.1007/s10668-022-02245-2

Cited by 22 publications

(7 citation statements)

References 83 publications

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“…In the Chinese context, companies invest in environmental responsibility primarily to respond to regulatory requirements ( Liu and Anbumozhi, 2009 ) and in social responsibility to protect the interests of stakeholder groups such as shareholders, employees and consumers. Since 2013, China has set the goal of industrial transformation and upgrading, and environmental protection and economic development have become the main contradictions in the current modernisation process in China ( Zhang et al, 2022 ). As a heavily polluting industry, manufacturing is subject to stricter government regulation and greater pressure to improve environmental performance.…”

Section: Discussionmentioning

confidence: 99%

Exploring the relationship of ESG score and firm value using fsQCA method: Cases of the Chinese manufacturing enterprises

Zhong

Hou

et al. 2022

Front. Psychol.

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The basic purpose of a business is to maximize value. With the increased expectations for companies’ social responsibility practices and sustainability, sustainability management has become a must for many companies to maximize value in the current competitive environment. Environmental, social and governance (ESG) are widely used indicators to evaluate corporate social responsibility performance. However, there is a lack of combined view on the three dimensions. This study aims to explore the sources of corporate value from the sustainability perspective. By using fsQCA (fuzzy-set qualitative comparative analysis), we proposes a configurational model consisting of environmental, social, governance, size and profitability to investigate the value-enhancing mechanisms of corporate social responsibility. The study shows that high enterprise value can be achieved through multiple paths, which can be categorized as resource-constrained type, slack resources type and good management type.

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Section: Discussionmentioning

confidence: 99%

Exploring the relationship of ESG score and firm value using fsQCA method: Cases of the Chinese manufacturing enterprises

Zhong

Hou

et al. 2022

Front. Psychol.

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“…In the long run, the innovation compensation of environmental regulation policy will take over. As time passes, the higher cost may be offset by technological advancement, inventive production modes, or even new performance, resulting in a further intensification of the positive impact and a reduction in the negative impact [35]. Meanwhile, research to date indicates that various environmental regulations affect an organization's decision to choose a proactive or reactive environmental strategy in the context of extended producer responsibility regimes, resulting in varying economic and environmental performance [36].…”

Section: Environmental Regulation and Sustainable Development Perform...mentioning

confidence: 99%

Factors Affecting Manufacturing Enterprises’ Sustainable Development Performance – Based on the fsQCA Method

Xing¹,

Chen²,

Yang³

et al. 2022

Pol. J. Environ. Stud.

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In the face of huge pressure of resources and the environment, sustainable development is a certain way to effectively improve resource utilization and enhance the competitiveness of enterprises themselves. Based on a synergistic evolutionary perspective, this study selected 289 Chinese manufacturing enterprises as samples, tried to analyze the configuration effects of environmental regulation, green dynamic capability, slack resources and sustainable dual innovations with fsQCA method, so as to reveal the multiple concurrency mechanisms affecting the sustainable development performance of manufacturing enterprises. The study concludes that: no single factor is a prerequisite for sustainable development performance; the paths to high levels of sustainable development performance can be divided into two development models, namely incentive-capability-innovationoriented and resource-innovation-oriented; there are various ways to improve sustainable development performance in different given situations. The findings of the study enriched the factors that affect how well manufacturing enterprises perform in terms of sustainable development, and explore internal and external synergistic mechanisms for doing so from a histological perspective, advancing the study of manufacturing enterprises' sustainable development under the severe resource environments.

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“…The “heterogeneity in compliance costs” of different sizes of enterprise can explain the impact of ERG on the company’s profit margins [ 34 ]. Zhang et al [ 35 ] argued that there is an inverted U-shaped relationship between China’s environment regulation policy and the business performance of manufacturing firms. Different types of environmental management tools had different impacts on FP: Chen et al [ 36 ] found that the command-control ERG suppresses FP, while the market ERG improves it.…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Mediation Effect of Corporate Tax Burden and the Relationship between Environmental Regulation and Firm Performance

Dai

Huang

Zhang

et al. 2022

IJERPH

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This paper took the panel data of 1052 heavily-polluting listed companies from both the Shanghai and Shenzhen Stock Exchange from 2010 to 2017 to empirically analyze the impact of environmental regulation (ERG) on firm performance (FP). The article introduces a mediating effect model to test the mediating role of corporate tax burden (ETR) within the relationship between ERG on FP. The results showed that: (1) ERG has exerted a significant enhancement effect on the performance of heavily polluted firms via the ETR reduction mechanism. (2) The mediating effect of ETR depends on the duration of ERG. A significant time lag exists before the mediating effect starts to work, and the magnitude of the mediating effect increases with the time lag from the execution of the ERG. (3) The mediating effect of ETR varies significantly with the nature of corporate property rights. It is significant for the state-owned firms, while for non-state-owned firms, there is no evidence supporting the existence of the mediating effect of ETR despite ERG still having a significant direct-impact on FP. Based on these findings, we discuss the policy suggestion to optimize the impact of environmental regulation policies in terms of incentivizing the green development of polluting firms.

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Does environmental regulation policy help improve business performance of manufacturing enterprises? evidence from China

Cited by 22 publications

References 83 publications

Exploring the relationship of ESG score and firm value using fsQCA method: Cases of the Chinese manufacturing enterprises

Exploring the relationship of ESG score and firm value using fsQCA method: Cases of the Chinese manufacturing enterprises

Factors Affecting Manufacturing Enterprises’ Sustainable Development Performance – Based on the fsQCA Method

Mediation Effect of Corporate Tax Burden and the Relationship between Environmental Regulation and Firm Performance

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