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The impact of environmental regulation on green image management of supply chain: Evidence from China

Donghui Li, Zhanxiang Zhang and Rui Xu

Finance Research Letters, 2025, vol. 74, issue C

Abstract: This paper explores the spillover effects of environmental regulation on supply chain management in emerging markets. Employing China's low-carbon city pilot policy (LCCP), our difference-in-differences analysis shows that environmental regulation promotes firms to conduct green image management of the supply chain. Mechanism tests indicate that this effect is driven by female executives, directors with environmental backgrounds, and financial support. Moreover, firms’ financial performance is enhanced after the green image management of the supply chain. Our study provides a unique perspective on environmental regulation's spillover effects in emerging markets, with great practical significance for realizing the actual impacts of environmental regulation.

Keywords: Environmental regulation; Low-carbon city pilot policy; Green image management; Supply chain (search for similar items in EconPapers)
JEL-codes: G34 M14 Q58 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:74:y:2025:i:c:s1544612324017525

DOI: 10.1016/j.frl.2024.106723

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