Abstract
The widespread state-holding of manufacturers and severe environmental pollution enlighten to investigate if Chinese government well coordinates the relationship between firms' business performance (operational performance, financial performance, and speed of development) and environmental performance. We use R&D investment, net profit rate, and growth to represent above 3 kinds of business performance, respectively. Empirical results show that R&D investment significantly positively interacts with environmental performance, while such state does not appear in the interaction between net profit rate as well as growth and environmental performance. Further, the moderating role of state-holding is not very positive.
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