Article2015

How Political Connections Affect Corporate Environmental Performance: The Mediating Role of Green Subsidies

Han Lin · Saixing Zeng · Hanyang Ma · Hongquan Chen

88 citations0/0 files storedHuman and Ecological Risk Assessment An International Journal

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Political Influence and Corporate Strategies Corporate Social Responsibility Reporting Environmental Sustainability in Business

Abstract

This study investigates the relationship between political connections and corporate environmental performance, and examines the role of government green subsidies on this relationship within the current Chinese context. Using data from publicly traded private manufacturing firms, empirical results show that politically connected firms are significantly more likely to obtain green subsidies than non-connected firms. Assisted by green subsidies, firms with political connections show better environmental performance than those without. Our findings reveal the mechanism by which corporate political connections influence environmental performance.

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References

2011External Control of Organizations: Resource Dependence Perspective 1995Toward a New Conception of the Environment-Competitiveness Relationship 1982Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models 2001Corporate Social Responsibility: A Theory of the Firm Perspective 1995A Natural-Resource-Based View of the Firm 1997A RESOURCE-BASED PERSPECTIVE ON CORPORATE ENVIRONMENTAL PERFORMANCE AND PROFITABILITY.2006Politically Connected Firms 2000WHY COMPANIES GO GREEN: A MODEL OF ECOLOGICAL RESPONSIVENESS.

Cited by

2018The heterogeneous relationship between board social ties and corporate environmental responsibility in an emerging economy 2022Urban environmental legislation and corporate environmental performance: End governance or process control?2022The impact of political connections on firm pollution: New evidence based on heterogeneous environmental regulation 2020The impact of the amount of environmental information disclosure on financial performance: The moderating effect of corporate internationalization 2019Does megaproject social responsibility improve the sustainability of the construction industry?

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