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Dual environmental regulations and corporate environmental violations

Author

Listed:
  • Liu, Xiangqiang
  • Deng, Liyun
  • Dong, Xiaohong
  • Li, Qinyang

Abstract

This study identifies the impact of dual environmental regulations on corporate environmental violations using Chinese A-share listed companies from 2009 to 2020. The results reveal that both formal and informal environmental regulation significantly inhibit the environmental violations of enterprises, and there is a complementary effect between formal and informal environmental regulation on violations. Moreover, the mechanism test shows that the above effects are based on the channel of ESG disclosure willingness and ESG performance. The effects are stronger in firms with high total factor productivity, low market competition, and low executive green cognition.

Suggested Citation

  • Liu, Xiangqiang & Deng, Liyun & Dong, Xiaohong & Li, Qinyang, 2024. "Dual environmental regulations and corporate environmental violations," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002605
    DOI: 10.1016/j.frl.2024.105230
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    References listed on IDEAS

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    More about this item

    Keywords

    Dual environmental regulation; Corporate environmental violation; ESG; Voluntary disclosure;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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