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Establishment of environmental tribunals and corporate outward investment behaviour

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  • Du, HouYang
  • Guo, Hang

Abstract

This paper examines the relationship between establishing environmental tribunals and corporate outward investment. Based on listed firms from 2006 to 2022, this paper adopts a difference-in-difference model to explore the effects and underlying mechanisms. The findings indicate that establishing environmental tribunals can promote corporate outward investment including the willingness, numbers and amount. The impact is achieved by enhancing financing constraints, and widening credit spreads.

Suggested Citation

  • Du, HouYang & Guo, Hang, 2024. "Establishment of environmental tribunals and corporate outward investment behaviour," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008250
    DOI: 10.1016/j.frl.2024.105795
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    References listed on IDEAS

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    1. Zhou, Kuo & Luo, Haotian & Qu, Zhi, 2023. "What can the environmental rule of law do for environmental innovation? Evidence from environmental tribunals in China," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
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    3. Dong, Yan & Tian, Jinhuan & Ye, Jingjing, 2021. "Environmental regulation and foreign direct investment: Evidence from China's outward FDI," Finance Research Letters, Elsevier, vol. 39(C).
    4. Zhang, Qi & Yu, Zhi & Kong, Dongmin, 2019. "The real effect of legal institutions: Environmental courts and firm environmental protection expenditure," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    5. Vagnani, Gianluca & Tian, Jinhuan & Dong, Yan, 2023. "Outward foreign direct greenfield investments and firms predicted long-term stock volatility levels and connectedness. Evidence from China," Finance Research Letters, Elsevier, vol. 58(PC).
    6. Kong, Dongmin & Liu, Chenhao, 2024. "Centralization and regulatory enforcement: Evidence from personnel authority reform in China," Journal of Public Economics, Elsevier, vol. 229(C).
    7. Dongmin Kong & Chen Lin & Lai Wei & Jian Zhang, 2022. "Information Accessibility and Corporate Innovation," Management Science, INFORMS, vol. 68(11), pages 7837-7860, November.
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