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Corporate governance and corporate environmental investments: Evidence from China

Author

Listed:
  • Qiang Li
  • Wenjuan Ruan
  • Tiantian Sun
  • Erwei Xiang

Abstract

Using a data set of Chinese listed companies over the period 2008 to 2015, this paper empirically examines whether corporate governance affects the environmental investment decisions. We find that the separation of controlling shareholder’s control right and cash flow right is negatively correlated to corporate environmental investment. Moreover, managerial ownership strengthens the abovementioned negative correlation, which is consistent with the controlling shareholder–manager collusion hypothesis. A further test suggests that internal control effectively weakens the controlling shareholder–manager collusion in their environmental investment decisions.

Suggested Citation

  • Qiang Li & Wenjuan Ruan & Tiantian Sun & Erwei Xiang, 2020. "Corporate governance and corporate environmental investments: Evidence from China," Energy & Environment, , vol. 31(6), pages 923-942, September.
    • Handle: RePEc:sae:engenv:v:31:y:2020:i:6:p:923-942
    DOI: 10.1177/0958305X19882372
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    1. Yongxiang Jiao & Fen Xu & Wenjing Ma & Hongen Yang, 2023. "Can Urban Greening Construction Improve the Corporate Preventive Environmental Investment? Evidence from China," Sustainability, MDPI, vol. 15(12), pages 1-17, June.

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