Corporate governance and corporate environmental investments: Evidence from China

Abstract

© The Author(s) 2020. Using a data set of Chinese listed companies over the period 2008 to 2015, this paper empirically examines whether corporate governance affects the environmental investment decisions. We find that the separation of controlling shareholder’s control right and cash flow right is negatively correlated to corporate environmental investment. Moreover, managerial ownership strengthens the abovementioned negative correlation, which is consistent with the controlling shareholder–manager collusion hypothesis. A further test suggests that internal control effectively weakens the controlling shareholder–manager collusion in their environmental investment decisions.

Document Type

Journal Article

Date of Publication

9-1-2020

ISSN

0958305X

Volume

31

Issue

6

Publication Title

Energy and Environment

Publisher

Sage

School

School of Business and Law

RAS ID

29800

Funders

Fundamental Research Funds for the Central Universities of China

Comments

Li, Q., Ruan, W., Sun, T., & Xiang, E. (2020). Corporate governance and corporate environmental investments: Evidence from China. Energy & Environment, 31(6), 923-942. https://doi.org/10.1177/0958305X19882372

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subscription content

First Page

923

Last Page

942

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Link to publisher version (DOI)

10.1177/0958305X19882372