Environmental performance and corporate risk-taking: Evidence from China
Zijun Luo and
Pacific-Basin Finance Journal, 2022, vol. 74, issue C
This study investigates the relationship between environmental performance and corporate risk-taking in China. Using the sample from China between 2010 and 2016, we find that corporate risk-taking is negatively associated with their environmental performance. Compared to non-state-owned firms, this association is more pronounced in state-owned firms. More equity incentives, higher independent director proportion, and higher institutional ownership are found to weaken this relationship. We further document that active environmental behavior (e.g. mature environmental management and more green innovation) alleviate this negative relationship. These conclusions remain valid after a series of robustness tests and endogeneity tests.
Keywords: Environmental performance; Corporate risk-taking; Quiet life hypothesis (search for similar items in EconPapers)
JEL-codes: G31 G38 M14 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:74:y:2022:i:c:s0927538x22001068
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 ().