Heavy-polluting Enterprises Research Articles

Corporate carbon disclosure, financing structure, and total factor productivity: evidence from Chinese heavy polluting enterprises.

Low-carbon economy has become the current global economic development trend, and corporate carbon disclosure has attracted more and more attention from scholars and investors. This study creatively explores the mechanism of corporate carbon disclosure on total factor productivity with financing structure as a mediating variable. The content analysis method is employed to assess carbon disclosure that is suitable for Chinese enterprises. Through the mediating effect model and Sobel test, the internal mechanism of carbon disclosure affecting total factor productivity is analyzed, with Chinese heavy polluting enterprises from 2015 to 2018 as research samples. The results show that, firstly, carbon disclosure has a positive effect on the improvement of total factor productivity. The effect of monetary carbon disclosure on the improvement of total factor productivity is higher than that of non-monetary carbon disclosure. Secondly, the financing structure has a mediating effect between carbon disclosure and total factor profductivity, and the mediating effect of internal financing capabilities is better than those of external financing costs. Finally, external financing costs and internal financing capabilities have mediating effects in both heterogeneous carbon disclosure and total factor productivity. The mediating effect of internal financing capabilities is significantly higher than the mediating effect of external financing costs. The effect of monetary carbon disclosure on total factor productivity indirectly through internal financing capabilities is higher than that of non-monetary carbon disclosure.

Can environmental protection tax aggravate illegal pollution discharge of heavy polluting enterprises?

This paper mainly studies the impact of environmental protection tax (EPT) on the illegal emission behaviors of heavy polluting enterprises. Based on the real-time data from the nearest air monitoring points, this paper calculates the day-night difference of PM2.5 to measure whether there are illegal emission behaviors. And, difference in difference method (DID) is used based on the quasi-natural experiment of EPT. First, the baseline DID results show that EPT reduces day-night difference of PM2.5, and inhibits illegal emissions. Second, the influence paths results show that EPT can inhibit illegal emission by increasing innovation, environmental responsibility performance, and environmental penalty cost, and EPT aggravate illegal emissions by increasing environmental costs and environmental corruption. Third, the influence of different pollutant pricing on illegal emissions is further analyzed. The effect of air pollutant pricing on illegal emissions is inhibited first and then promoted, while higher water pollutant pricing will aggravate illegal emissions. This paper provides enlightenment on adjusting EPT policy for local governments to curb illegal emissions, and provides an economic explanation for the differences of illegal pollution discharge in different places.

The Impact of Green Credit on the Green Innovation Level of Heavy-Polluting Enterprises-Evidence from China.

This article uses the “Green Credit Guidelines” promulgated in 2012 as an example to construct a quasi-natural experiment and uses the double difference method to test the impact of the implementation of the “Green Credit Guidelines” on the green innovation activities of heavy-polluting enterprises. The study found that, in comparison to non-heavy polluting enterprises, the implementation of green credit policies inhibited the green innovation of all heavy-polluting enterprises. In the analysis of heterogeneity, this restraint effect did not differ significantly due to the nature of property rights and the company’s size. The mechanism test showed that green credit policy limits the efficiency of business investment and increases the cost of financing business debt. Eliminating corporate credit financing, particularly long-term borrowing, negatively impacts the green innovation behavior of listed companies.

Environmental performance evaluation of heavy polluting enterprises

Based on this super-efficiency SBM model, this paper evaluates the environmental performance of heavy polluting enterprises and finds that the overall environmental performance value of heavy polluting enterprises is not good and needs to be improved.

How Information Technology Investment Affects Green Innovation in Chinese Heavy Polluting Enterprises

Promoting green innovation is an effective way to solve the increasingly serious environmental pollution problems in emerging economies. Information technology is constantly changing the operation mode of enterprises; however, whether information technology investment helps promote enterprises’ green innovation is still an important issue to be studied. According to resource-based and knowledge integration theory, this study constructs data from Chinese A-share listed heavy polluting enterprises during 2010–2018, adopting the panel data Tobit model to investigate the nexus between information technology investment and green innovation. Our empirical results demonstrate that the amount of information technology investment is positively correlated with the emerging levels of green patents in Chinese heavy polluting enterprises, and this positive correlation only significantly exists in state-owned enterprises (SOEs) and enterprises with a strong sense of environmental responsibility and strict environmental regulation. The findings of this study help understand in depth how information technology investment affects enterprises’ green innovation and its boundaries, which also have important policy implications for government departments and enterprises to make better use of information technology to deal with the challenge of environmental pollution.

How to improve environmental performance of heavily polluting companies in China? A cross-level configurational approach

Heavy-polluting companies disclose environmental information voluntarily or passively. However, few studies have focused on which corporate internal characteristics affect the motivation of environmental information disclose (EID) in the process of improving environmental performance, and how the combination of multi-factor affects environmental performance. In view of the causal complexity of environmental performance, our adopt fuzzy-set Qualitative Comparative Analysis (fsQCA). The heavy-polluting enterprises in the manufacturing industry of China Shanghai A-Stock Exchange are used to analyze. The results show that the signal transmit-strategy and legitimacy-cognitive driven pattern can improve corporate environmental performance. The combination of market competition and EID is a key factor leading to differences in corporate environmental performance. The research conclusions contribute to exploring the path to improve environmental performance from the configuration lens, as well as the inducements of environmental performance differences.

Digitalization and environment: how does ICT affect enterprise environmental performance?

Despite the increasing use of digital technology in industrial production, how industrial digitalization affects the environmental performance of production activities remains unclear. This research contributes to the literature on the relationship between industrial digitalization and enterprise environmental performance by employing a large sample of Chinese manufacturing enterprises. Results indicate that the environmental performance of manufacturing enterprises has been significantly improved in the process of industrial digital transformation. Structural and technology effects are the transmission channels; additionally, structural effect is the main contributor to the positive environmental effects of information and communications technology (ICT) penetration. Industrial digitalization reduces the production scale of heavy-polluting enterprises and improves product innovation and green total factor productivity, but it has an insignificant effect on total factor productivity. Moreover, industrial digitalization improves enterprise environmental performance by introducing front-end cleaner production technologies, rather than by increasing pipe-end pollutant treatment facilities.

The Green Innovation Effect on Heavy-Polluting Enterprises Under the Environmental Protection Law

One of the main purposes of the 2015 Environmental Protection Law (EPL) of the People's Republic of China is to boost the green innovation of the enterprises. Using heavy-polluting enterprises as examples, this paper uses the Difference-in-difference analysis (DDD) technique to analyze the influence of EPL on the green innovation of enterprises under fiscal decentralization and enterprise heterogeneity. Results show that EPL exerts a negative impact on the green innovation of heavy-polluting enterprises at the national level, as well as those in the central and western areas specifically. The only presence of positive motivation for green innovation is being found in the eastern area, although, the motivation seems to be insignificant. The negative impacts have been lasting in the long run, especially for the low-performance enterprises in the central areas. As for the targeted implementation of EPL in China, local governments should make the best use of financial power under fiscal decentralization. This balanced approach is designed to motivate enterprises in different regions with various performance levels to develop green innovation based on their different weaknesses and strengths.

Machine learning approaches for explaining determinants of the debt financing in heavy-polluting enterprises

Under the background of green credit policy, more and more attention has been paid to the debt financing of high-polluting enterprises. This paper collects 224 financial and non-financial indicators in 40 listed enterprises in the mining, steel, and power industries to investigate their relationship with those measurement indicators. This paper selects the XGBoost method for feature selection to sort out the top six indicators of the combination of subsets under the condition of high dimension. The screened indicators have a good effect in predicting long-term debt. Further explanation is given based on the Shapley additive explanation value.

Shale gas production in China: A regional analysis of subsidies and suggestions for policy

With the increasing dependence on imported natural gas, China has to develop unconventional natural gas resources, such as shale gas. However, the increasing shale gas production has brought about more pressure for governmental subsidies. We analyzed whether shale gas companies need subsidies by calculating the economic value of shale gas development in China from the perspective of enterprises, and estimated the maximum subsidy quota for shale gas development by measuring its economic, environmental, and social benefits from the country's perspective. Based on the principle of beneficiaries should pay, we clarified the sources of shale gas subsidy and calculated the required subsidy duration. The results indicate that some new development target areas and pre-invested target areas still need subsidies, which should be jointly provided by the central government, local finance departments, and other heavy-polluting enterprises. The subsidy duration and subsidy quota show a power function relation. On this basis, we put forward suggestions for shale gas subsidy policy.

Can Environmental Regulation Reduce Labor Costs and Improve Business Performance? Evidence From the Air Quality Index.

This study examines selected companies in China from 2012 to 2017 matched with provincial air quality index data and uses ordinary least squares regression to examine the relationship between environmental regulation, air quality, employee compensation, and corporate performance. The study found that, first, environmental regulation has eliminated heavy polluting enterprises and promoted the upgrading of enterprise equipment through the cost increase effect, thereby improving regional air quality. Second, good air quality can increase non-monetary benefits for employees, so that corporate employees' monetary compensation can be kept at a low level. Third, in the aforementioned context, with the significant reduction in employee compensation, corporate performance has increased. This study expands the research on the impact of environmental regulation on corporate behavior and enriches the theoretical literature on employee compensation management. Furthermore, to alleviate the adverse effects of high employee compensation on corporate performance under severe air quality, it provides recommendations moving forward. In addition, this study provides empirical evidence for the development of the concept of “lucid waters and lush mountains are invaluable assets” from the perspective of labor cost.

The Implementation of the New <i>Environmental Protection Law</i> and Audit Fees

This paper mainly studies the impact of the implementation of the new Environmental Protection Law on the change of audit fees of heavy polluting enterprises and non-heavy polluting enterprises. Based on the listed companies in China as samples from year 2012 to 2016 (excluding year 2014), I use new Environmental Protection Law this “natural experiment”, which came into effect on January 1, 2015, and divide the whole samples into the experimental group and control group, according to the list of heavy pollution industry from the Environmental Information Disclosure Guidelines for Listed Companies (draft) issued by ministry of environmental protection in 2010. This passage tries to test whether the new Environmental Protection Law has impacted on audit fees. Furthermore, this paper finds that after the implementation of the new Environmental Protection Law, the audit fees of heavy polluting enterprises increase significantly, and this phenomenon is more significant in regions with good legal environment and strong environmental regulations. The contribution of this paper is to expand the academic research on the influence factor of audit fee, connect the influence of macroscopic law on the behavior of certified public accountants. At the same time, this paper expands the research scope of the intervention of laws and regulations, adding certified public accountants and finds the disciplinary function of audit fees.

环境表现对重污染企业融资成本的影响研究

环境表现对重污染企业融资成本的影响研究

Evaluation of industrial water use efficiency considering pollutant discharge in China.

China is facing severe pressure on its water resources and water environments. Calculating the industrial water efficiency of each province is an important index for the central government to evaluate local governments. In the traditional water resources evaluation index, the industrial water use efficiency and pollutant discharge are evaluated separately. In this paper, we collected industrial input data, output data and pollutant discharge data with a four-stage data envelopment analysis to calculate China's industrial water use efficiency with and without considering pollutant discharge, and then analyzed the factors influencing the industrial water use efficiency. The results show that the eastern coastal provinces of China have the highest water use efficiency and are less affected by pollutant discharge than other provinces. The industrial water use efficiency of the central and western provinces is lower than that of the other provinces, and the industrial water use efficiency in the central provinces is greatly affected by pollutant discharge. Factor endowment, economic development level, scientific and technological progress, industrial structure, proportion of foreign investment, water consumption per 10000 yuan of value-added by industry, industrial sewage treatment capacity and educational investment have a significant influence on the industrial water use efficiency of China. We suggest that the government strengthen the construction of sewage plants and other related infrastructure in central provinces when conducting the industrial transfer of heavy polluting enterprises.

Public environmental appeal and innovation of heavy-polluting enterprises

In recent years, the rapid development of China’s economy has caused a certain degree of environment damage, and the public environmental appeal has become increasingly strong, which has an impact on the production, management and sewage sludge treatment of the heavy-polluting enterprises. Using the search index of the network search engine as a proxy for public environmental appeal, this study examines how and why public environmental appeal affect innovation activities of them through multiple regression analysis. The results show that public environmental appeal has positive effects on innovation output, input and efficiency. Besides, mechanism analysis reveal that the increase of public environmental appeal can promote innovation level of heavy-polluting enterprises by promoting analyst coverage and reputation mechanism. This study puts forward a unique perspective, which not only extends the understanding of informal environmental regulations but also enlightens the sustainable development of heavy-polluting enterprises in China.

Research on Enterprise Environmental Accounting Information Disclosure from the Perspective of Environmental Protection—Taking Sinopec as an Example

The “One Belt, One Road” initiative has proposed that green, low-carbon, recycling and sustainable development have become the emphasis of ecological civilization in China and along the route. Strengthening ecological environmental protection and building a green silk road are important goals for the development of all countries. We know that the harm caused by the business activities of heavily polluting enterprises is extremely serious. To build a green silk road, heavy polluting enterprises should bear the brunt of our main focus. Further, corporate environmental accounting information used by companies to measure the impact of daily business activities on the environment is also attracting attention. Therefore, this paper takes oil companies as an example to analyze the status quo of corporate environmental information disclosure from the perspective of sustainable development, and proposes corresponding suggestions for its existing problems.

Study of Environmental Information Disclosure under the Hypothesis of Political Cost-Based on PM2.5 Burst Event

This paper selects the A shares listed companies during 2009-2016 years on the Shanghai stock exchange as samples, and explores the influence mechanism of environmental information disclosure from the angle of political cost. The results showed that the environmental information disclosure of heavy polluting enterprises was significantly improved compared to the non-heavy polluting enterprises after PM2.5 burst event at later 2011, and it was particularly significant in the subsamples of state-owned and low-equity-concentration enterprises. It indicates that the change of macro natural environment is also one of the sources of political cost for heavy polluting enterprises, and then affects its environment information disclosure. The results are of great practical significance for establishing and improving the corporate social responsibility reporting system and strengthening the regulation of related policies.

Does Hazy Weather Influence Earnings Management of Heavy-Polluting Enterprises? A Chinese Empirical Study from the Perspective of Negative Social Concerns

During the 2014 APEC Conference, there was a long presence of blue sky (APEC Blue) after a long-time occurrence of hazy weather in Beijing, China, which prompted the public’s attention to heavy-polluting enterprises to reach a new peak. Will the public’s negative concern about the incident will affect the operation of heavy-polluting enterprises? In this paper, we analyzed the influence of the haze-related exogenous events before and after the “APEC Blue” on earnings management of heavy-polluting enterprises from a new perspective of negative social attention. We carry out research from three perspectives for further research, which involve the growth in the demand for accounting information disclosure, the increase of consumers’ low-carbon consciousness and differences in the amount of attention on enterprises with different properties and scales. Results indicate that heavy-polluting enterprises have stronger preference for downward earnings management, especially in those enterprises that are large in scale, non-state owned, or have a direct relationship with consumers.