Peer effects, environmental regulation and environmental financial integration—Empirical evidence from listed companies in heavily polluting industries

Ying Shu, Xiaobin Zhuang, Guanghua Xu, Shanfei Zhang and Rui Ying

Economic Analysis and Policy, 2024, vol. 82, issue C, 1446-1458

Abstract: Amidst pressing global needs for environmental protection and sustainable development, the international community expects corporations to play a vital role, balancing profit pursuits with environmental responsibility. As the world's second-largest economy and a manufacturing giant, China's environmental governance and corporate models become a research centerpiece. Using the panel data of Chinese A-share heavy polluting industry listed companies from 2013 to 2020, and adopting the Linear-In-Means Model, this paper proposes for the first time that the corporate environmental financial integration is significantly influenced by the peer enterprises. Further research finds that: 1) Peer effect is more significant in private enterprises than state-owned enterprises. 2)The peer effect of environmental pollution integration of heavily polluting enterprises is sticky, mainly reflected in the effect of focus enterprises following peer enterprises to reduce their own environmental financial integration is stronger than the effect of following peer enterprises to upgrade synchronously. And this kind of stickiness is more significant in private enterprises. 3) The institutional pressure has a role in promoting the peer effect of enterprise environmental financial integration, and more significant in state-owned enterprises. Delving into the dynamics of Chinese enterprises in environmental management and financial strategies serves not only to excavate lessons from China's experience but also contributes to the global reservoir of wisdom on environmental protection and green development.

Keywords: Heavy pollution industry; Environmental-financial-index; Peer effect; Property heterogeneity; Environmental regulation (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:82:y:2024:i:c:p:1446-1458

DOI: 10.1016/j.eap.2024.05.017

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