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Unlocking the link: Foreign-experienced board of directors and environmental violations in China

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  • Kazim, Irfan
  • Wang, Fangjun
  • Zhang, Xia

Abstract

This study investigates the influence of directors with foreign experience on corporate environmental violations. By analyzing a dataset encompassing 7055 firm-year observations in China from 2008 to 2020, we unveil a significant negative association between the presence of directors with foreign experience and instances of corporate environmental violations. This effect is particularly pronounced among firms in polluting industries, indicating that such firms derive greater advantages from the foreign experience of their directors compared to non-polluting firms. Moreover, our findings indicate that the presence of directors with foreign experience strengthens monitoring practices and fosters environmental sustainability, particularly in low-market-competition environments.

Suggested Citation

  • Kazim, Irfan & Wang, Fangjun & Zhang, Xia, 2024. "Unlocking the link: Foreign-experienced board of directors and environmental violations in China," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012849
    DOI: 10.1016/j.frl.2023.104912
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    References listed on IDEAS

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