Environmental protection interview and corporate environmental investment: Evidence from China

Jiewei Zhang and Yi Yang

Research in International Business and Finance, 2025, vol. 74, issue C

Abstract: This study examines the impact of a new government’s environmental governance tool, namely, the environmental protection interview system, on corporate environmental investment. Using Chinese A-share companies and a difference-in-differences design, we show that enhanced environmental law enforcement significantly boosts corporate investment in environmental initiatives. Mechanism tests indicate that this effect works in two ways: it raises public awareness of environmental issues and improves green awareness among internal management. Further analysis shows that the policy’s positive impact is most pronounced in non-state-owned sectors, manufacturing industries, and companies operating in highly marketized regions. These results highlight the relationship between macro-level environmental policies and corporate investment in green initiatives, and they provide policy implications for strengthening environmental supervision and enforcement and improving the environmental law enforcement system.

Keywords: Environmental protection interview; Environmental investment; Environmental protection supervision (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:74:y:2025:i:c:s0275531924004872

DOI: 10.1016/j.ribaf.2024.102694

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