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Do employees’ voices matter? Unionization and corporate environmental responsibility

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  • Jiang, Xiandeng
  • Yang, Jin
  • Yang, Wei
  • Zhang, Jian

Abstract

This paper examines whether unionization influences firms’ investments in environmental protection, and finds a positive association between unionization and investment in environmental protection. Specifically, the positive association strengthens when firms (i) show higher levels of charitable donations; (ii) are located in regions receiving greater amounts of foreign direct investment; (iii) are located in regions in which political reliance is high; (iv) are located in regions with low antipollution investment. We alleviate endogeneity concerns by controlling for firm-fixed effects, using the propensity-score matching (PSM) method and the instrumental variable approach, and conducting a battery of robustness checks. The results of our additional analysis validate the finding that firms with unions tend to engage in environmental investment. In conclusion, we provide new evidence for the impact of unions on a given firm’s investment in environmental protection.

Suggested Citation

  • Jiang, Xiandeng & Yang, Jin & Yang, Wei & Zhang, Jian, 2021. "Do employees’ voices matter? Unionization and corporate environmental responsibility," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 1265-1281.
    • Handle: RePEc:eee:reveco:v:76:y:2021:i:c:p:1265-1281
    DOI: 10.1016/j.iref.2019.11.013
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    More about this item

    Keywords

    Unionization; Corporate environmental investment; Employees;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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