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Social insurance reform and corporate environmental Investments: Evidence from China

Year: 2025

Type: article

Abstract: This study examines the impact of social insurance contributions on corporate environmental investments. Adopting a quasi-natural experimental design based on the implementation of 2011 Social Insurance Law in China, we employ a difference-in-differences model and find that the increase in social insurance contributions prompts firms to increase their environmental investment. This effect is more pronounced for firms that exhibit higher labor intensity, and are located in regions with stricter environmental regulations, as well as those with politically connected CEOs. Our research provides valuable insights into the factors that influence firms’ environmental investment from the perspective of firm-government interaction.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104482

Authors: Bingcheng Zou, Cheng Xu, Meiting Lu, Song Chen

Institutions: Xi’an Jiaotong-Liverpool University, Macquarie University, Jiangxi University of Finance and Economics

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,930