EconPapers    
Economics at your fingertips  
 

Corruption and firm efforts on environmental protection: Evidence from a policy shock

Cheng Yang, Wenzhe Zhang, Yan Sheng and Zhiqing Yang

Pacific-Basin Finance Journal, 2021, vol. 65, issue C

Abstract: This paper evaluates the causal effects of China's anti-corruption campaign on corporate environmental costs. Using primary data and the investigations of the anti-corruption campaign as a quasi-natural experiment, our difference-in-differences estimation shows that: (1) the inspections encourages heavy pollution enterprises to increase investment in environmental protection; (2) our findings are particularly pronounced in subsamples of SOEs, non-SOEs with political connections, firms with more related party transaction, with less government’ intervention, with more financing constrains and information asymmetry. Overall, this paper links the corruption and environmental protection, which is helpful for the governments to improve the environment circumstances through political channel.

Keywords: Corruption; Environmental protection; Corporate environmental investment; Quasi-natural experiment; China (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X20306776
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:65:y:2021:i:c:s0927538x20306776

DOI: 10.1016/j.pacfin.2020.101465

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2024-02-12
Handle: RePEc:eee:pacfin:v:65:y:2021:i:c:s0927538x20306776