Environmental responsibility, market valuation, and firm characteristics: Evidence from China

Junnan Hu · Shujing Wang · Feixue Xie

62 citations0/0 files storedCorporate Social Responsibility and Environmental Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Social Responsibility Reporting Corporate Finance and Governance Environmental Sustainability in Business

Abstract

Abstract Using a large panel of listed firms in China from 2010 to 2015, this study investigates the valuation effect of corporate environmental responsibility (CER) and firm characteristics that influence such an effect. We implement the ordinary least squares and the fixed effects panel regressions as well as the two‐stage least squares regressions that control for potential endogeneity. We find that CER has a significantly positive effect on firm performance. The positive effect is more pronounced for firms in highly polluting industries, with high asset tangibility and with low state ownership. Furthermore, firms with high ownership concentration and low managerial ownership tend to benefit more from their environmentally responsible activities, suggesting that enhanced environmental engagement may serve as a strategic tool in reducing the negative effects of agency cost and weak corporate governance on firm valuation. Our results are robust to alternative measures of performance (Tobin's Q and return on assets).

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 62 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1995Toward a New Conception of the Environment-Competitiveness Relationship 2007Strategy and society: the link between competitive advantage and corporate social responsibility 2013Corporate social responsibility and access to finance 2017Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis 2006Corporate Social Responsibility: Strategic Implications*1985AN EMPIRICAL EXAMINATION OF THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY.2013The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness

Cited by

2022The Effects of ESG Combined Score on Business Performance of Enterprises in the Transportation Industry 2019The impact of corporate social responsibility transparency on the financial performance, brand value, and sustainability level of IT companies 2022Does going abroad lead to going green? Firm outward foreign direct investment and domestic environmental performance 2023The impact of corporate social responsibility decoupling on financial performance: the role of customer structure and operational slack

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.