Corporate governance and corporate environmental investments: Evidence from China. Issue 6 (September 2020)

• Record Type: Journal Article
• Authors: Li, Qiang; Ruan, Wenjuan; Sun, Tiantian; Xiang, Erwei
• Other Names: Zhang Zhong Xiang guest-editor.
• Is Part Of: Energy & environment. Volume 31:Issue 6(2020)
• Page Start: 923
• Page End: 942
• Publication Date: 2020-09
• Subjects: Corporate governance -- corporate environmental investment -- collusion -- internal control; Power resources -- Environmental aspects -- Periodicals; Power resources -- Periodicals; Renewable energy sources -- Periodicals; Energy policy -- Environmental aspects -- Periodicals; Ressources énergétiques; Politique énergétique; Energy policy -- Environmental aspects; Power resources; Power resources -- Environmental aspects; Renewable energy sources; Periodicals; 333.7
• DOI: 10.1177/0958305X19882372
• Languages: English
• ISSNs: 0958-305X

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.