The Effects of Government Support on Corporate Performance Hedging against International Environmental Regulation

Hye-Young Joo and Hyunsuk Suh
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Hye-Young Joo: Graduate School of International Logistics and Trade, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06794, Korea
Hyunsuk Suh: College of Business and Economics, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 156-756, Korea

Sustainability, 2017, vol. 9, issue 11, 1-25

Abstract: Government support systems are crucial for export SMEs (Small to Medium Enterprises) to cope with growing international environmental regulations. However, empirical studies show a limited research area to explore the performance of export SMEs with the help of government support systems to meet international environmental regulations. This study draws implications on the relationship between government support and corporate performance on export SMEs between two countries: Korea and China. Based on 350 samples from Korea and 320 from China, we diagnosed government supports most positively affects corporate performances in the area of eco-innovation. While education, certificate, and tax supports were less pressing areas to support, no significance was found in information support. Furthermore, we found that eco-innovation is the strongest motive to accelerate corporate performance. Finally, the support of Chinese government on firms seems to be more affective when compared to Korean government support.

Keywords: international environmental regulations; government support systems; eco-innovation; corporate performance; Korea and China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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