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Public environmental concern, CEO turnover, and green investment: Evidence from a quasi-natural experiment in China

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  • Gu, Yan
  • Ho, Kung-Cheng
  • Yan, Cheng
  • Gozgor, Giray

Abstract

We investigate the impact of public environmental concern (PEC) on corporate green investments from the perspective of CEO turnover using the extreme event of PM 2.5 surge at the end of 2011 in China as a quasi-natural experiment. Compared with non-heavily polluting companies, the probability of CEO turnover in heavily polluting ones has significantly increased amid the surge of PEC. Heavily polluting companies ease the pressure by increasing green investment. In addition to the hard regulative measures such as environmental regulations, the PEC as a form of soft regulation also makes corporate management more focused on environmental responsibility.

Suggested Citation

  • Gu, Yan & Ho, Kung-Cheng & Yan, Cheng & Gozgor, Giray, 2021. "Public environmental concern, CEO turnover, and green investment: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:eneeco:v:100:y:2021:i:c:s0140988321002826
    DOI: 10.1016/j.eneco.2021.105379
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    More about this item

    Keywords

    Public environmental concern; ESG; CEO turnover; Smog; Extreme event;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-

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