Earnings pressure, external supervision, and corporate environmental protection investment: Comparison between heavy-polluting and non-heavy-polluting industries

Wang, Lei; Chen, Chen; Zhu, Bing

doi:10.1016/j.jclepro.2022.135648

Cited by 15 publications

(8 citation statements)

References 35 publications

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“…A set of control variables that impact corporate carbon emissions on an annual basis are represented by

. This study selects enterprise size, asset-liability ratio, fixed asset ratio, liquidity ratio, total asset return rate, operational net cash flow, capital intensity, and equity concentration as control variables affecting enterprise carbon emissions [ 48 , 77 , 96 ]. Evaluation Model of the Impact of the GCG on Pay Gap: …”

Section: Methodsmentioning

confidence: 99%

“…On the other hand, the uncertainty it creates increases operational risks [ 68 ]. Conversely, in the face of inadequate internal financing and unnecessarily high external financing expenses, enterprises forgo investment projects that could yield expected returns in order to prevent financial crises, which has a detrimental effect on their overall performance [ 77 ]. Empirical results suggest that heavily polluting enterprises' performance is worse than lightly polluting ones following the release of the “GCG."…”

Section: Theoretical Analysis and Hypothesesmentioning

confidence: 99%

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Green finance and high-pollution corporate compensation - Empirical evidence from green credit guidelines

Li,

Lin,

Xiao

2024

Heliyon

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“…A set of control variables that impact corporate carbon emissions on an annual basis are represented by

Section: Methodsmentioning

confidence: 99%

Section: Theoretical Analysis and Hypothesesmentioning

confidence: 99%

Green finance and high-pollution corporate compensation - Empirical evidence from green credit guidelines

Li,

Lin,

Xiao

2024

Heliyon

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“…This measure reflects the proportion of environmental expenditure relative to the company’s overall capital. If EPI is high, it will lead to the reduction of funds for other production activities [ 56 ]; otherwise, if EPI is low, it reflects that the enterprise has not fulfilled the environmental protection task well [ 57 ]. We used the Super Slack Based Measure (super-SBM) to calculate the EPIE.…”

Section: Methodsmentioning

confidence: 99%

Green finance and corporate environmental investment: "Scale Up" or "Efficiency Up"?

Yang,

Ming,

Zhang

et al. 2024

PLoS ONE

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The establishment of green finance reform and innovation (GFRI) pilot zone is an important measure of the Chinese government to urge enterprises to develop green transformation. This paper explores the impact of pilot policies in the GFRI pilot zone on corporate environmental investment. Based on 819 A-share listed enterprises from 2010 to 2020, our staggered difference-in-differences (staggered DID) estimation documents revealed that enterprises in the GFRI pilot zone significantly increased the corporate environmental investment efficiency but reduced the scale of corporate environmental investment.This conclusion remained robust after Propensity Scores Matching difference-in-differences (PSM-DID), replacing dependent variables, and shortening the time window. We contend that the increased research and development (R&D) expenditure and technological innovation are the potential mechanisms at work. Heterogeneity analysis showed that the establishment of GFRI improved the environmental investment efficiency of polluting enterprises but had no effect on green enterprises.Meanwhile, the effect of GFRI exhibited heterogeneity in the type of enterprise ownership. This paper evaluates the implementation effect of GFRI from the perspective of corporate environmental investment, and provides theoretical support and an empirical basis for green finance policy to serve China’s green economy.

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“…This study helps to alert firm stakeholders and the public to focus less on the surface of phenomena in environmental protection of firms but to investigate the specific implementation of environmental strategies. Third, media and other external supervisors play significant roles in sustainability, and they can promote the goals and responsibilities of sustainability in governments and firms through monitoring and reporting [35,36]. Therefore, we provide insights for future research on sustainable development from corporate sustainability, environmental sustainability, and the subject of sustainable development supervision.…”

Section: Introductionmentioning

confidence: 93%

Window Dressing in Impression Management: Does Negative Media Coverage Drive Corporate Green Production?

Gan,

2024

Sustainability

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This study addresses the calls for research attention on corporate greenwashing and analyzes an environmental strategy in corporate impression management. We assume that negative media coverage triggers impression motivation and causes firms to adopt environmental strategies for impression construction based on the two-component model in impression management. Specifically, firms release credible signals, such as green investment, to cover concealed pollution emissions under the framework of a game with incomplete information. We posit that firms can select a window-dressing strategy under the pressures of negative media coverage by constructing two regression models, respectively. We also assess our underlying assumption of constraints from state ownership and institutional shareholdings by testing additional moderating relationships. Utilizing a sample of Chinese publicly listed firms from 2000 to 2010, our empirical results suggest that negative media coverage increases corporate green investment, but pollutant emissions are reduced correspondingly, and state ownership aggravates corporate window dressing while institutional shareholdings curb it. Our findings reveal the corporate social irresponsibility in environmental protection and sustainable development, and they offer important implications for firm stakeholders.

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Earnings pressure, external supervision, and corporate environmental protection investment: Comparison between heavy-polluting and non-heavy-polluting industries

Cited by 15 publications

References 35 publications

Green finance and high-pollution corporate compensation - Empirical evidence from green credit guidelines

Green finance and high-pollution corporate compensation - Empirical evidence from green credit guidelines

Green finance and corporate environmental investment: "Scale Up" or "Efficiency Up"?

Window Dressing in Impression Management: Does Negative Media Coverage Drive Corporate Green Production?

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