Unlocking the link: Foreign-experienced board of directors and environmental violations in China

Irfan Kazim, Fangjun Wang and Xia Zhang

Finance Research Letters, 2024, vol. 60, issue C

Abstract: This study investigates the influence of directors with foreign experience on corporate environmental violations. By analyzing a dataset encompassing 7055 firm-year observations in China from 2008 to 2020, we unveil a significant negative association between the presence of directors with foreign experience and instances of corporate environmental violations. This effect is particularly pronounced among firms in polluting industries, indicating that such firms derive greater advantages from the foreign experience of their directors compared to non-polluting firms. Moreover, our findings indicate that the presence of directors with foreign experience strengthens monitoring practices and fosters environmental sustainability, particularly in low-market-competition environments.

Keywords: Directors’ foreign experience; Environmental violation; China; Upper Echelons Theory (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012849

DOI: 10.1016/j.frl.2023.104912

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