Environmental responsibility governance: Local environmental legislation influence on corporate environmental investment decisions

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-03-18 DOI:10.1016/j.frl.2025.107250

Yuge Hu , Yifei Dong , Pradeep Paraman

引用次数: 0

Abstract

This study examines the impact of local environmental legislation on corporate environmental investment, using data from Chinese A-share listed companies from 2011 to 2022. The findings reveal that stricter local environmental regulations significantly encourage firms to increase environmental investments. This effect is further amplified by environmental fines, which serve as a mediating mechanism. Additionally, the quality of internal corporate controls enhances the effectiveness of these regulations. A heterogeneity analysis shows that the positive influence of local environmental legislation on corporate environmental investment is more pronounced in state-owned enterprises and firms operating in economically developed regions.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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