Community pressure, regulatory pressure and corporate environmental performance. Issue 2 (May 2022)

• Record Type: Journal Article
• Authors: Zhou, Yankun; Luo, Le; Shen, Hongtao
• Is Part Of: Australian journal of management. Volume 47:Issue 2(2022)
• Page Start: 368
• Page End: 392
• Publication Date: 2022-05
• Subjects: Community pressure -- corporate environmental performance -- government environmental subsidy -- regulatory enforcement; Management -- Periodicals; Management -- Australia -- Periodicals; Business enterprises -- Finance -- Periodicals; Industrial management -- Australia -- Periodicals; 330
• DOI: 10.1177/03128962211017172
• Languages: English
• ISSNs: 0312-8962

Abstract

This article analyses the relationship between community pressure, regulatory pressure and corporate environmental performance. Using a sample of 2192 firm-year observations in environmentally sensitive industries for the period 2007–2012, we find that increased community pressure is negatively associated with corporate pollution levels and thus positively associated with corporate environmental performance. Furthermore, intensified community pressure can strengthen regulatory enforcement, but it cannot increase the size of the government subsidy allotted to environmental issues. Finally, regulatory enforcement partly mediates the relationship between community pressure and environmental performance. This study contributes to the understanding of firms' environmental management and the interaction of community and regulatory pressure. JEL Classification:G38, M41, Q53, Q56