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Corporate governance and corporate environmental investments: Evidence from China

Year: 2019

Type: article

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.

Source: Energy & Environment

DOI: 10.1177/0958305x19882372

Authors: Qiang Li, Wenjuan Ruan, Tiantian Sun, Erwei Xiang

Institutions: China University of Mining and Technology, Murdoch University, Edith Cowan University

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

Funder: Fundamental Research Funds for the Central Universities