Environmental governance and firm's environmental investment: Evidence from the natural resources and assets accountability audit of outgoing officials

Langchuan Peng and Hao Li

Finance Research Letters, 2024, vol. 65, issue C

Abstract: This paper examines how the natural resources and assets accountability audit conducted on outgoing officials affects environmental investments of Chinese listed firms. Using a longitudinal dataset and employing a staggered difference-in-differences (DD) estimation method, our findings reveal a notable increase in firms’ environmental investment due to the policy. The impact is noticeable solely within large-scale corporations and state-owned enterprises. Moreover, we further investigate the underlying mechanism and discover that the observed effects are driven by a reduction in the tax burden.

Keywords: Natural resources and assets accountability audit; Environmental investment; Tax incentives (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324005750

DOI: 10.1016/j.frl.2024.105545

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