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The impact of public participation in environmental governance on the technical efficiency of enterprise

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  • Cao, Xinghua
  • Chen, Hao

Abstract

This paper investigates the impact of public participation in environmental governance on the technical efficiency at the firm-level. Using the stochastic frontier method to measure the technological efficiency, we find that the average technical efficiency of enterprises has gradually increased, and the distribution of technical efficiency of enterprises varies by region. We further show that public participation in environmental governance can significantly improve enterprises’ technical efficiency. Finally, the heterogeneity analysis shows that our findings are more pronounced in state-owned firms and small firms.

Suggested Citation

  • Cao, Xinghua & Chen, Hao, 2024. "The impact of public participation in environmental governance on the technical efficiency of enterprise," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001429
    DOI: 10.1016/j.frl.2024.105112
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    References listed on IDEAS

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    More about this item

    Keywords

    Public environmental participation; Enterprise technical efficiency; Environmental pollution control; Stochastic frontier method;
    All these keywords.

    JEL classification:

    • G19 - Financial Economics - - General Financial Markets - - - Other
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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