Corporate Environmental Performance and the Choice of Export Mode – Based on the Theory of Heterogeneous Firm Trade

Abstract

Heterogeneous firm trade theory holds that firms' productivity is closely related to firms' export mode and Corporate Environmental Performance (CEP). CEP as one of the important elements associated with firms' productivity, has a significant impact on firms' export mode. The objective of the paper is to assess the enterprises with import and export business in Maoming City. Primary data was used to obtain data, while binary logistic regression analysis was used to analyse the data to determine the influence of CEP on export mode. The results show that the CEP has a positive impact on the export mode. Furthermore, results show that enterprises with better CEP are more inclined to choose the direct export mode, and vice versa. This result is consistent with the theory of heterogeneous firm trade. The study recommends that the Chinese government should give full consideration to the export mode of enterprises when making export policies and make full use of CEP's positive influence on the export mode to promote the internationalisation strategy of enterprises and realise the maximisation of enterprise value.