Does Overseas Investment Raise Corporate Environmental Protection? Evidence from Chinese A-List Companies.

Quan-Jing Wang,Dan-Yang Li,Qiong Shen,Yong Geng

doi:10.3390/ijerph19020837

Abstract

This paper uses the relevant data of China’s listed companies from 2010 to 2018 to test the impact of overseas investment on corporate environmental protection and further examines whether the heterogeneity of the company and the heterogeneity of the host country changes this effect. The research results show that the environmental protection of overseas investment companies is significantly higher than that of other companies. The impact of overseas investment on corporate environmental protection is dynamic, and it only helps improve corporate environmental protection after three years of investment. This article is conducive to causally identifying the logical relationship between overseas investment and corporate environmental protection. The policy significance is that the government can rationally guide companies to invest abroad, and oversea investment will help enhance corporate environmental protection.

Highlights

The findings suggest that overseas inas their entry points, this study focuses on corporate environmental protection, which is vestment improves corporate environmental protection and the impact of overseas investment ongreen corporate environmental protection is dynamicthe in nature, with impact corporate of enviat the core of corporate sustainability, and confirms positive overseas ronmental protection improving after three years following overseas investment
The between-group t-test likewise indicates that overseas investment helps to improve corporate environmental protection awareness
The coefficient of After_3 is 0.645, which is significantly positive at the 5% level, implying that in the third year after overseas investment, overseas investment significantly increased the environmental protection of enterprises

Summary

Introduction

In the process of economic transformation, the vitality of China’s market economy continues to be unleashed, which has led to rapid economic development, while major issues affecting people’s livelihoods such as environmental pollution and decline in air quality have emerged. According to the latest “Environmental Performance Index: 2017 Report” released by Yale University, China ranks 60th out of 181 countries in the Environmental Performance Index, and it is an improvement from 109th place in 2016, environmental pollution is still a serious problem in China //epi.yale.edu/sites/default/files/2017EPI_Full_Report_opt.pdf, accessed on 6 June 2021 and http://epi.yale.edu/sites/default/files/2016EPI_Full_Report_opt.pdf, accessed on. It is necessary to investigate what factors can promote the environmental protection in China (Dong et al, 2012; Yang et al, 2019) [1,2].

Methods

Results

Conclusion