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Environmental regulations and corporate social responsibility: Evidence from China's real-time air quality monitoring policy

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  • Zhang, Yue
  • Zhao, Zhao

Abstract

Taking China's real-time air quality monitoring policy as a quasi-natural experiment, we find that the overall corporate social responsibility (CSR) performance of publicly listed firms in pilot cities is significantly worse than that of other firms. The policy motivates state-owned enterprises (SOEs) to be environmentally responsible and engage in CSR but has a negative effect on non-state-owned enterprises (non-SOEs). The negative effect on the CSR performance of non-SOEs is significant enough to overshadow the positive effect it has on SOEs. Non-SOEs have less access to political connections and government subsidies than SOEs, and this may reduce their motivations to be more environmentally responsible.

Suggested Citation

  • Zhang, Yue & Zhao, Zhao, 2022. "Environmental regulations and corporate social responsibility: Evidence from China's real-time air quality monitoring policy," Finance Research Letters, Elsevier, vol. 48(C).
    • Handle: RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002215
    DOI: 10.1016/j.frl.2022.102973
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