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Does a Board Chairman’s Political Connection Affect Green Investment?—From a Sustainable Perspective

Author

Listed:
  • Kai Wang

    (College of Business Administration, Capital University of Economics and Business, Beijing 100070, China)

  • Hao-Min Zhang

    (School of Business, Macau University of Science and Technology, Macau 999078, China)

  • Sang-Bing Tsai

    (Zhongshan Institute, University of Electronic Science and Technology of China, Zhongshan 528402, China)

  • Li-Dong Wu

    (China Academy of Corporate Governance, Nankai University, Tianjin 300071, China)

  • Kun-Kun Xue

    (China Academy of Corporate Governance, Nankai University, Tianjin 300071, China)

  • He-Jun Fan

    (College of Business Administration, Capital University of Economics and Business, Beijing 100070, China)

  • Jie Zhou

    (College of Tourism and Service Management, Nankai University, Tianjin 300071, China)

  • Quan Chen

    (Zhongshan Institute, University of Electronic Science and Technology of China, Zhongshan 528402, China)

Abstract

Using a sample consisting of China’s listed manufacturing companies which issue A-shares on the Shenzhen and Shanghai stock exchanges from 2008–2014, this study empirically tests the relationship between board chairman’s political connections and the amount of energy conservation and emission reduction investment. The results show that the existence of politically-connected board chairmen positively affects green investment. In addition, marketization degrees negatively moderate the relationship between political connection and green investment, which supports an institutional logic perspective. The amount of redundant resources also has the same moderating effect, which is consistent with the resource exchange perspective.

Suggested Citation

  • Kai Wang & Hao-Min Zhang & Sang-Bing Tsai & Li-Dong Wu & Kun-Kun Xue & He-Jun Fan & Jie Zhou & Quan Chen, 2018. "Does a Board Chairman’s Political Connection Affect Green Investment?—From a Sustainable Perspective," Sustainability, MDPI, vol. 10(3), pages 1-14, February.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:3:p:582-:d:133355
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    References listed on IDEAS

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    2. Liu, Guangqiang & Yang, Zhiqing & Zhang, Fan & Zhang, Nan, 2022. "Environmental tax reform and environmental investment: A quasi-natural experiment based on China's Environmental Protection Tax Law," Energy Economics, Elsevier, vol. 109(C).
    3. Hu, Yingde & Bai, Wensong & Farrukh, Muhammad & Koo, Chun Kwong, 2023. "How does environmental policy uncertainty influence corporate green investments?," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

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