Community pressure, regulatory pressure and corporate environmental performance

Yankun Zhou, Le Luo and Hongtao Shen
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Yankun Zhou: School of Economics and Management, Nanjing University of Science and Technology, Nanjing, China
Le Luo: Department of Accounting and Corporate Governance, Macquarie University, Sydney, NSW, Australia
Hongtao Shen: School of Management, Research Center on Low-Carbon Economy for Guangzhou Region, Jinan University, Guangzhou, China

Australian Journal of Management, 2022, vol. 47, issue 2, 368-392

Abstract: This article analyses the relationship between community pressure, regulatory pressure and corporate environmental performance. Using a sample of 2192 firm-year observations in environmentally sensitive industries for the period 2007–2012, we find that increased community pressure is negatively associated with corporate pollution levels and thus positively associated with corporate environmental performance. Furthermore, intensified community pressure can strengthen regulatory enforcement, but it cannot increase the size of the government subsidy allotted to environmental issues. Finally, regulatory enforcement partly mediates the relationship between community pressure and environmental performance. This study contributes to the understanding of firms’ environmental management and the interaction of community and regulatory pressure. JEL Classification: G38, M41, Q53, Q56

Keywords: Community pressure; corporate environmental performance; government environmental subsidy; regulatory enforcement (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:47:y:2022:i:2:p:368-392

DOI: 10.1177/03128962211017172

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