Corporate Environmental Behavior Research Articles

The impact of economic policy uncertainty on corporate environmental information disclosure: the moderating role of media attention and financing constraints

Economic policy uncertainty (EPU) is a major source of risk that could affect corporate environmental behaviors. We investigated the impact of EPU on environmental information disclosure by using 15,308 firm-year observations from 2,316 Chinese manufacturing firms between 2010 and 2020. Our study shows that EPU can be an incentive for firms to disclose environmental information. This finding supports the voluntary disclosure theory that firms are prone to disclose more environmental efforts in times of high EPU. Furthermore, the results show that the positive relationship between EPU and corporate environmental information disclosure can be positively moderated by media attention and financing constraints. Firms in competitive industries and heavily polluting industries provided better environmental information disclosure when facing uncertainty. Our results provide implications that managers should emphasize the quality of disclosure and use environmental information disclosure as a key strategy to deal with EPU.

Impact of CEO foreign experience on corporate environmental violations: The role of enhanced environmental ethics and general competency

This study examined the relationship between CEO foreign experience and corporate environmental violations using data from heavy-polluting China-listed firms. The impact of CEO foreign experience on corporate environmental violations remains underexplored. Existing studies primarily examine managerial foreign experience in corporate environmentally responsible behavior, relying on firms' voluntary disclosure or third-party agencies’ evaluations. However, data on corporate environmental violations issued by governments is more reliable. Our findings indicate firms led by CEOs with foreign experience exhibited less likelihood and frequency of environmental violations. The negative correlation was more pronounced when firms were under weaker institutional pressure from central and local governments, poor environmental judicial quality, and adequate public participation. Enhanced environmental ethics and general competency are potential mechanisms through which CEO foreign experience affects corporate environmental behavior. The findings highlight the significance of CEO foreign experience in shaping corporate environmental violations, providing essential policy implications for emerging market stakeholders.

Corporate environmental behavior toward sustainable development: Motivations, benefits, and challenges of ISO 14001 adoption at Japanese subsidiaries in Thailand

AbstractSince the Earth Summit held in Rio de Janeiro in 1992, ISO 14001 has become an internationally recognized environmental management system that has spread all over the world. The existing literature has examined in detail the motivations, benefits, and challenges of ISO 14001 adoption in developed countries. However, there is a relative lack of studies on the adoption of ISO 14001 by the subsidiaries of multinational corporations (MNCs) in developing countries, and in Thailand in particular. This paper investigates the motivations, benefits, and challenges of ISO 14001 adoption at Japanese subsidiaries in Thailand based on the results of a questionnaire survey of 100 subsidiaries and a semi‐structured interview survey of 11 subsidiaries. We find that the main motivations are pressures by the national and local governments, as well as by the customers. In addition to the tax incentives, the main benefits are gaining competitiveness, enhancing the corporate image, and maintaining efficient management. We also identify the following challenges: the costs of ISO 14001 adoption, and the training and awareness of the employees. Compared with the existing literature, we find some new motivations, benefits, and challenges related to the local context of ISO 14001 adoption. Although our results are valid only for the Japanese subsidiaries in Thailand, the in‐depth understanding of the motivations, benefits, and challenges of ISO 14001 adoption may contribute to the expanding literature about corporate environmental behavior toward sustainable development.

Resistance or motivation? Impact of climate risk on corporate greenwashing: An empirical study of Chinese enterprises

Increasing climate risk (CR) has pushed corporate environmental responsibility into the limelight, requiring a deeper understanding of its impact on corporate environmental behavior. This study examined the impact of CR on corporate greenwashing using data from A-share listed enterprises in China from 2009 to 2022. The findings indicate the following: (1) Augmented CR significantly discourages corporate greenwashing, primarily by improving corporate innovation capabilities; (2) Strong external and internal corporate governance magnifies the inhibitory effect of CR on greenwashing, stimulating authentic environmental actions during crises; (3) The impact of CR on greenwashing is more pronounced in executive teams with greater gender diversity, higher educational levels, shorter tenures, and increased visibility; (4) In the context of CR, greenwashing hinders corporate high-quality development; (5) The impact of CR is particularly notable in state-owned enterprises, enterprises in industries with lower competitive intensity, and enterprises in their maturity or decline stages.

Follow the Leader: How Culture Gives Rise to a Behavioral Bias That Leads to Higher Greenhouse Gas Emissions

This research investigates the influence of national culture, particularly power distance, on firms’ carbon dioxide (CO2) emissions. Drawing on a large international dataset spanning over a decade, we examine how power distance, agency conflict, and socioeconomic stability interact to shape firms’ emission decisions. Our analysis reveals a significant positive relationship between power distance and firms’ CO2 emissions, indicating that firms located in countries characterized by higher power distance tend to emit more greenhouse gases (GHGs). Furthermore, we find that agency conflict moderates this relationship, with firms experiencing high levels of debt or paying substantial dividends exhibiting lower emissions in high power distance environments. Additionally, socioeconomic stability attenuates the positive association between power distance and emissions, suggesting that the effectiveness of cultural influences on emission decisions is contingent upon the stability of the societal context. These findings underscore the importance of considering cultural dimensions, agency dynamics, and socioeconomic conditions in understanding corporate environmental behavior. Our research contributes to the literature by providing empirical evidence of the nuanced interplay between national culture, agency conflict, and socioeconomic stability in shaping firms’ emission decisions. Policymakers and practitioners can use these insights to develop more targeted environmental policies and strategies aimed at promoting sustainable development globally.

Prevention or ex-post forcing? The impact of dual environmental regulation on corporate environmental behavior

Corporate reactions to environmental regulation are the hottest topics in research on corporate environmental behavior. However, a few studies incorporate other environmental behavior into the same framework. By constructing a comprehensive indicator system of dual environmental regulation, this paper uses a comparative analysis to discuss Chinese A-listed corporations' environmental behavior from 2009 to 2017, which were influenced by dual environmental regulation. The study's results show that formal environmental regulation (FER) has a significant U-shaped effect on pre-emptive environmental behavior (PEB) but an insignificant impact on ex-post environmental behavior (NEB). After categorizing the various forms of FER, this study finds that market-incentive environmental regulation has a significant inverted U-shaped effect on NEB but an insignificant impact on PEB, voluntary-participation regulation have a significant U-shaped effect on PEB and an inverted U-shaped effect on their NEB, and command-control regulation has significant influence on neither PEB nor NEB. In addition, informal environmental regulation (IER) has a significantly positive and negative effect on PEB and NEB. This study shows that corporate perceptions of policies can have a positive impact on the interaction between the FER and PEB but a negative impact on the interaction between the IER and PEB, and no impact on the interaction between FER or IER and NEB. Moreover, the impact of FER and IER on corporate environmental behavior (CEB) varies depending on factors like ownership, industry characteristics, the market environment, and regional development. Therefore, governments should understand the choices related to corporate environmental behavior under the dual environmental regulation—formal and informal—and prioritize the synergistic impact of these dual environmental regulation, highlighting their enforceability, and take into account the heterogeneity of their targets and the market to stimulate PEB and decrease NEB to help enterprises align their short-term economic objectives with their long-term social goals.

The influence of digital platform on the implementation of corporate social responsibility: from the perspective of environmental science development to explore its potential role in public health.

This paper aims to explore the intersection of corporate social responsibility (CSR) and public health within the context of digital platforms. Specifically, the paper explores the impact of digital platforms on the sustainable development practices of enterprises, seeking to comprehend how these platforms influence the implementation of environmental protection policies, resource management, and social responsibility initiatives. To assess the impact of digital platforms on corporate environmental behavior, we conducted a questionnaire survey targeting employees in private enterprises. This survey aimed to evaluate the relationship between the adoption of digital platforms and the implementation of environmental protection policies and practices. Analysis of the survey responses revealed a significant positive correlation between the use of digital platforms and the environmental protection behavior of enterprises (), Moreover, the presence of innovative environmental protection technologies on these platforms was found to positively influence the enforcement of environmental policies, with a calculated impact ratio of (). An intermediary analysis highlighted that environmental innovation technology plays a mediating role in this process. Additionally, adjustment analysis showed that enterprises of various sizes and industries respond differently to digital platforms, indicating the need for tailored environmental policies. These findings underscore the pivotal role of digital platforms in enhancing CSR efforts and public health by fostering improved environmental practices among corporations. The mediating effect of environmental innovation technologies suggests that digital platforms not only facilitate direct environmental actions but also enhance the efficiency and effectiveness of such initiatives through technological advances. The variability in response by different enterprises points to the importance of customizable strategies in policy formulation. By offering empirical evidence of digital platforms' potential to advance CSR and public health through environmental initiatives, this paper contributes to the ongoing dialogue on sustainable development goals. It provides practical insights for enterprises and policy implications for governments striving to craft more effective environmental policies and strategies.

Money talks: How financial constraint influence corporate environmental behavior prioritization

Financial constraints (FCs) have a well-documented impact on corporate environmental behavior (CEB), including increasing pollution emissions and hindering green innovation. However, the prioritization of these tasks especially under regulatory pressure remains an unexplored area. This study investigates how FCs affect CEB, the priority of different tasks, and the moderating role of environmental regulation (ER). The findings show that: (1) FCs lead to higher pollutant emissions, particularly in small firms, and fewer green innovations, particularly in large firms; (2) with the rise of FCs level, small companies are more likely to shift to passive CEB choices combining higher pollution emissions and lower green innovation than large firms; (3) ER increases short-term compliance pressure and reduces pollution emissions for financially constrained companies, but also reduces green innovation. This research offers a detailed comprehension of how financial factors influence a company's strategic decision-making with regards to environmental practices.

Green Innovation, Environmental Certification, and the Sustainable Development of Enterprises in China

Purpose - Achieving sustainable development has always been the most important issue for enterprises. Owing to global warming and environmental deterioration, environmental management is increasingly becoming a major concern for enterprises and the external world, especially stakeholder behavior. This study explores whether enterprise environmental management can contribute to its sustainable development, and how stakeholder behaviors can influence this relationship.
 Design/Methodology/Approach - This study uses a fixed effects regression model to empirically test the data of Chinese A-share listed companies from 2012 to 2020, and investigates the impact of corporate environmental behavior (i.e. green innovation and environmental certification) on the sustainable development of enterprises. It also explores the moderating role of government support and analyst attention in the impact of environmental management on corporate sustainability.
 Findings - The research results showed that enterprise environmental management, namely, green innovation and environmental protection certification, can promote sustainable development capabilities. Simultaneously, government support and proper attention from analysts can have a positive moderating effect on green environmental management and improve sustainable development.
 Research Implications - This study enriches relevant theories on enterprise environmental management and sustainable development, proposes the importance of government support and external institutional supervision, and provides a reference for sustainably developing enterprises from the perspective of stakeholder behaviors.

The Effect of Local Government Environmental Concern on Corporate Environmental Investment: Evidence from China

This paper uses machine learning tools to construct local government environmental concern indicators and empirically examines the impact of local government environmental concern on corporate environmental investment. From the resource endowment perspective, corporate resources’ moderating role is also verified. The major findings are as follows: (1) local government environmental concern has a significant positive effect on the environmental investment of corporations in their jurisdictions; (2) corporations with fewer financial and political resources will pay more attention to the local government’s intention when making environmental investment decisions, and the promotion effect of local government environmental concern on the environmental investment of such corporations is more prominent. Further analysis shows that this promotion effect is more significant in regions with a high intensity of environmental regulation and high levels of economic development, and is more effective for key regulated corporations. This paper verifies the effect of local government on micro-corporations in environmental governance from the perspective of environmental concern, broadens the boundary of research on the relationship between government and corporate environmental responsibility fulfillment, and enriches the study of factors influencing corporate environmental investment behavior. It also provides important empirical evidence for central and local governments to implement green development and build a government–business collaborative environmental governance system.

Does the “Greenwashing” and “Brownwashing” of Corporate Environmental Information Affect the Analyst Forecast Accuracy?

Taking the listed firms of heavy pollution industries in China for 2010–2021 as a sample, this study explored the impact and heterogeneity of corporate environmental disclosure behavior on analyst forecasts’ accuracy. We discovered that corporates measure or disclose environmental information and, the more environmental information is measured or disclosed, the more accurate analysts’ forecasts are; moreover, there is a strong and significant correlation between the environmental information given in the special reports and analysts’ forecast accuracy. This positive correlation is even more significant in cases of “matching words to deeds” and “brownwashing” by corporates. A mechanism analysis revealed that the analysts’ coverage and site visits both have a full or partial mediating effect. Specifically, analysts’ coverage is more likely to be elicited when corporates measure or disclose environmental information; the higher the degree of measurement or disclosure, disclose in the special reports, “matching words to deeds” and “brownwashing”. Analysts conducted site visits when corporates measured or disclosed environmental information, the higher the degree of measurement or disclosure, disclose in the special reports and “brownwashing”. The information above demonstrates that, on the one hand, specialized reports are published to supplement financial disclosures and, on the other hand, that analysts place importance on corporates’ incremental and explicit environmental information; however, “information screening” is insufficient and some “information mining” was carried out when corporate environmental information disclosure was insufficient. This study shed light on analysts’ roles in the improvement of the information environment of China’s capital market as well as the objective appraisal of the impact of corporate environmental information disclosure.

Environmental tax incentives and corporate environmental behaviour: An unintended consequence from a natural experiment in China

AbstractUsing the implementation of the Environmental Protection Tax (EPT) Law in China as a natural experiment, we explore the impact of environmental tax incentives on corporate environmental engagement. Evidence shows that, after the implementation of the EPT Law, there exists a significant improvement in the environmental performance of firms located in regions with increased EPT rates. However, our results reveal an unintended consequence that this effect is more salient for nonheavy‐polluting companies rather than for heavy polluters that are more targeted by the EPT Law.

Research on the Mechanism of Heterogeneous Corporate Environmental Responsibility in Z-Generation Consumers’ Sustainable Purchase Intention

As the public’s awareness of environmental protection and their concern for environmental issues increase, more and more companies are focusing on fulfilling their environmental responsibilities and meeting the green needs of consumers through diverse environmental behaviors. Based on the stimulus-organic-response model, this study adopts the scenario experiment method to explore the psychological response mechanism of consumers to heterogeneous corporate environmental responsibility behavior and their response to consumer behavior intentions using the two approaches of deep (psychological contract) and shallow (product sustainability perception) from the mechanisms of consumer psychological responses. Additionally, the research was conducted using the experimental scenario method and analyzed using an ANOVA and linear regression model. The results show that: consumers of Generation Z have stronger sustainable purchase intentions in the face of substantive environmental behaviors rather than symbolic environmental behaviors; consumers’ environmental self-efficacy plays a moderating role in the influence of corporate environmental responsibility behaviors on sustainable purchase intentions; and product sustainability perceptions and consumer psychological contracts have a dual mediating effect between corporate environmental responsibility behaviors and consumers’ sustainable purchase intentions. The conclusions enrich the diversity of the paths of influence of corporate environmental responsibility on consumer behavior and provide a theoretical basis for companies to effectively fulfill their environmental responsibility and choose environmentally friendly behaviors.

Does CEOs’ green experience affect environmental corporate social responsibility? Evidence from China

This study explores the impact of chief executive officers’ (CEOs) green experience on environmental corporate social responsibility (ECSR) by analyzing the 5373 firm-year observations from China. The result shows that hiring green CEOs increases environmental protection investment (EPI), environmental compliance, and ESG ratings, significantly for firms in non-polluting sectors. Channel analysis shows that CEOs with green-related experience improve their environmental consciousness, which stimulates corporate environmental behavior. The positive effects of green CEOs are more pronounced in firms with high-quality digital transformation and better internal and external governance mechanisms. Our results survive a battery of robustness tests, such as endogeneity concerns, alternative measures, and heterogeneity analysis. Overall, this study provides a theoretical contribution to the study of managerial characteristics and environmental governance based on work experience and educational background in emerging countries.

Exploring the role of language in shaping corporate environmental practices

While heterogeneity in languages has been shown to explain the variation in environmental behavior at the individual and country levels, we do not know whether these language effects also shape the behavior of firms. To address this gap, our study examines the relationship between corporate environmental behavior and language structure around the world. Using a large dataset of 26,390 observations over the 2007–2015 period, we find that firms’ environmental damages are lower where speakers are required to grammatically distinguish between future and present events (i.e., strong future time reference). Our findings suggest that perceiving future events as more distant and precise in time may help corporate managers better understand the consequences of environmental damages and take actions to reduce their impact. Language structure therefore appears to be a determinant of corporate environmental performance.

The power of culture: Does Confucian culture contribute to corporate environmental information disclosure?

AbstractWith the intensification of global environmental issues, corporate environmental information disclosure has received increasing attention. Different cultural and policy backgrounds have led to very different styles of corporate environmental information disclosure behavior. Whether Confucianism, the dominant culture that has influenced China for thousands of years, contributes to corporate environmental information disclosure deserves to be studied. Based on data from 3180 Chinese listed firms, this study confirms the positive effect of Confucian culture on environmental information disclosure. Meanwhile, Taoist culture and environmental regulation can positively moderate this effect. In addition, heterogeneity analysis unveils that Confucian culture plays a greater role in corporate environmental information disclosure for state‐owned firms and firms in highly polluting industries, while this role is weakened for firms with a high proportion of female executives and executives with foreign experience. This study links culture and environmental information disclosure, which helps to arouse the attention of whole society to utilize excellent traditional culture and helps the government to formulate effective environmental regulation policies.

How public attention drives corporate environmental protection: Effects and channels

Elucidating how public attention drives corporate environmental protection behavior is critical for sustainable development. Thus, this study constructs an instrumental variable for public attention and also regresses the related effects and channels of public attention in China. The sample includes the pollution-intensive listed enterprises on the Chinese Shanghai Stock Exchange and Shenzhen Stock Exchange from 2011 to 2019. The empirical results suggest that, increasing public environmental awareness significantly reduces production by 0.06 % in enterprises with high consumer pressure, and green innovation in enterprises with high investor pressure increases significantly by 0.12 %. The public achieves this effect through direct and indirect channels. Public attention directly drives corporate behavior due to pressure from consumers and investors. Moreover, public attention promotes environmental policies aimed at state-owned enterprises and indirectly drives corporate behavior. These findings demonstrate the significant role of the public during green process, and highlight the channels to maximize the public impacts for policymakers.

The Theoretical Lineage and Evolutionary Logic of Research on the Environmental Behavior of Family Firms: A Literature Review.

Family firms research is becoming one of the most important and promising areas for theoretical innovation in management practice. Corporate environmental behavior has attracted widespread academic attention, but the research on the environmental behavior of family firms is obviously insufficient, and the relevant research results are still in a fragmented state. In this paper, we review and summarize the existing research on the environmental behavior of family firms from three aspects: the research dimensions, the influencing factors, and the influencing effects, and try to sort out the theoretical lineage and evolutionary logic of the environmental behavior of family firms. From the existing research results, the research on the influencing factors and effects of family firms' environmental behavior is at the stage of strife, and there is a lack of in-depth and systematic research on the mechanisms affecting the environmental behavior of family firms and the changes of their effects. In the future, we can explore how to apply or integrate multiple theories simultaneously for complementary explanations, so as to provide a reference for the government to formulate targeted policies to stimulate and regulate the environmental behaviors of family firms.

Board gender diversity and corporate environmental commitment: A subnational perspective

AbstractWithin the expanding literature on the interplay of corporate governance and corporate environmental behavior, this study introspects the contrastingly reported relationship between board gender diversity (BGD) and corporate environmental commitment (CEC). It empirically explores the moderating effect of coercive (regulation stringency), normative (ethical standards), and mimetic pressures (following of peers), derived from the provincial level isomorphic exhibition of neo‐institutional theory, in the A‐share Chinese listed firms. Apart from confirming the aggregate level positive association between the variables, the findings also highlight the moderating effect of subnational institutional pressures on the relationship. While ruling out the endogeneity and establishing the robustness, the findings imply that the interplay of subnational institutional isomorphism and corporate governance in the case of BGD‐CEC relationship are likely both pertinent and prevalent. Moreover, the increase in BGD enhances the CEC of a firm, subject to the fulfillment of a province's specific boundary conditions, predefined by the unique set of subnational institutional pressures.

Corporate Environmental Protection Behavior and Sustainable Development: The Moderating Role of Green Investors and Green Executive Cognition

Faced with serious environmental problems, companies have become important participants in environmental protection efforts. By assuming environmental responsibilities and pursuing environmental protection, enterprises can create a good image, gain public and government support, and expand their influence. Simultaneously, green executive cognition and green investors play important roles in enterprises and the market economy. This study examines whether the environmental protection behavior of enterprises has a positive impact on their sustainable development, and how green investors and green executive cognition affect the relationship between environmental protection and sustainable development. This study adopts a fixed effects regression method to research Chinese A-share listed companies in 2011-2020. The results show that enterprises' performance regarding environmental responsibilities or investment promotes sustainable development. The higher the participation of green investors or the higher the awareness of green executives, the more the environmental responsibility performance and environmental investment promote enterprises' sustainable development. This study enriches the literature on the environmental protection behavior of enterprises and the sustainable development of enterprises as well as provides a theoretical foundation for related research. Moreover, the role of green investors and green executive cognition in promoting environmental protection and the sustainable development of enterprises will inspire investors and executives.