Environmental regulation and corporate sustainability: Evidence from green innovation

Abstract

Using a difference-in-differences (DID) design, this study investigates the effect of environmental regulation on corporate sustainability. The results show that China's low-carbon city pilot policy has had a positive impact on green innovation. Furthermore, this positive association was especially pronounced for privately owned firms and those in high-pollution industries. Additional analyses showed that the lowcarbon city pilot policy improved both corporate and environmental performance. This paper thus contributes to the literature on environmental regulation and corporate sustainability and has implications of interest to regulators and managers as well as researchers.

A Critique on Theoritical Framework for Adoption of Corporate Sustainability Practices: Iintegrating Institutional Motives, Stakeholder Motives, and Managerial Motives

“…The number of references to corporate sustainability and sustainability initiatives have significantly increased during the last two decades (Zhuo, 2023;Haseeb et. al., 2021) Over time, stakeholders' understanding of sustainability as a workable corporate strategy has grown (Lee et.…”

“…Furthermore, rather than taking into account a wider range of stakeholders, these theories focus primarily on financial stakeholders. In comparison to solely economic theories, social and political theories including legitimacy theory, stakeholder theory, and institutional theory are better able to offer meaningful theoretical insights into corporate sustainability strategies (Zhuo, 2023). In this particular study, the researcher has concentrated only on social theories of corporate sustainability such as stakeholder theory, institutional theory, resource-based theory, and legitimacy theory.…”

Carbon reduction and corporate sustainability: Evidence from low-carbon city pilot policy

“…As primary economic actors in urban development, firms bear the responsibility of supporting urban sustainable development as a component of the urban low-carbon transition [ 1 ]. How firms can contribute to the low-carbon transformation of urban areas thus becomes a crucial research question [ 2 ]. At a specific country level, the State Council of China released the Action Plan for Carbon Peaking before 2030 in October 2021, claiming that the industrial sector should lead the way in attaining carbon peaking by accelerating green, environmentally friendly and developing at a high level.…”

A Critique on Theoritical Framework for Adoption of Corporate Sustainability Practices: Iintegrating Institutional Motives, Stakeholder Motives, and Managerial Motives

“…al., 2020). The report stressed the necessity of moving quickly toward longterm economic expansion that doesn't harm the environment or deplete natural resources (Zhuo, 2023;Suluo et. al., 2020).…”