The Influence of Corporate Governance and Operating Characteristics on Corporate Environmental Investment: Evidence from China

Defeng Yang, Zhanqing Wang and Fangmin Lu
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Defeng Yang: Department of Marketing, School of Management, Jinan University, Guangzhou 510632, China
Zhanqing Wang: Department of Marketing, School of Management, Jinan University, Guangzhou 510632, China
Fangmin Lu: Department of Marketing, School of Management, Jinan University, Guangzhou 510632, China

Sustainability, 2019, vol. 11, issue 10, 1-18

Abstract: This study mainly explores the relationship between company governance, company operation characteristics, management connection and corporate environmental investment. Based on the theory of stakeholders and principal-agent, it expounds the factors affecting the environmental behavior of companies, and empirically tests the relationship of the involved variables. This study takes the non-financial listed companies of Shanghai Stock Exchange from 2009 to 2011 as a sample, and conducts empirical research on corporate governance, business operation characteristics, management connection and corporate environmental protection investment. The results show that under the same circumstances, if the CEO is also the chairman of the board of directors, it will lead to opportunistic situation of the controlling shareholder, and the degree of willingness to invest in environmental preservation is low, which is negatively related to environmental protection investment. The more redundant resources or the higher the production efficiency exist, the higher the willingness of enterprises to invest in environmental protection will be stimulated.

Keywords: shareholding structure; board characteristics; management connect; redundant resources; corporate environmental investment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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