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Environmental regulation and corporate philanthropy: Evidence and mechanism from China

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Listed:
  • Wang, Kun
  • Yu, Naifu
  • Ma, Ying
  • Tang, Yingkai

Abstract

This study uses a sample of A-share listed companies from 2009 to 2018 to examine the impact of environmental regulation policy on corporate charitable donation behavior. The obtained empirical results indicate that increased environmental regulation intensity promotes corporate charitable donations—a result that holds true even after robustness and endogeneity tests. A follow-up mechanism test verified the rationality of three theoretical hypotheses related to hypocrisy, slack resource adjustment, and compliance costs, which formed the basis on which the main hypothesis in this paper was developed. This paper expands the field of research on the boundary between the internal motivation for and external function of corporate social responsibility.

Suggested Citation

  • Wang, Kun & Yu, Naifu & Ma, Ying & Tang, Yingkai, 2023. "Environmental regulation and corporate philanthropy: Evidence and mechanism from China," Research in International Business and Finance, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001721
    DOI: 10.1016/j.ribaf.2023.102046
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    References listed on IDEAS

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    1. Paul Lanoie & Michel Patry & Richard Lajeunesse, 2008. "Environmental regulation and productivity: testing the porter hypothesis," Journal of Productivity Analysis, Springer, vol. 30(2), pages 121-128, October.
    2. Jun Chen & Wang Dong & Jamie Tong & Feida Zhang, 2018. "Corporate Philanthropy and Tunneling: Evidence from China," Journal of Business Ethics, Springer, vol. 150(1), pages 135-157, June.
    3. Xingqiang Du, 2015. "Does Confucianism Reduce Minority Shareholder Expropriation? Evidence from China," Journal of Business Ethics, Springer, vol. 132(4), pages 661-716, December.
    4. Xingqiang Du, 2015. "Is Corporate Philanthropy Used as Environmental Misconduct Dressing? Evidence from Chinese Family-Owned Firms," Journal of Business Ethics, Springer, vol. 129(2), pages 341-361, June.
    5. Sihai Li & Huiying Wu & Xianzhong Song, 2017. "Principal–Principal Conflicts and Corporate Philanthropy: Evidence from Chinese Private Firms," Journal of Business Ethics, Springer, vol. 141(3), pages 605-620, March.
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    Cited by:

    1. Kiran, Madiha & Chughtai, Sumayya & Naeem, Muhammad Abubakr, 2024. "Navigating greenwashing in the G8: Insights into family-owned firms, technology innovation, and economic policy uncertainty," Research in International Business and Finance, Elsevier, vol. 71(C).

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