Related party transactions and corporate environmental responsibility

Choi, Wonseok; Chung, Chune Young; Rabarison, Monika K.; Wang, Kainan

doi:10.1016/j.frl.2021.102490

Cited by 10 publications

(6 citation statements)

References 17 publications

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“…CER can be costly for firms, and its benefits are often realized in the long term (Choi et al, 2022). Thus, firms with tight cash flow and limited financing may not be willing to participate in CER activities.…”

Section: Expected Effect Of Digital Transformation On Cermentioning

confidence: 99%

Corporate environmental responsibility in polluting firms: Does digital transformation matter?

Lin

Zhang

2023

Corp Soc Responsibility Env

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The motivations for firms to undertake corporate environmental responsibility (CER) have been a hot topic in academia. However, with the rise of the digital economy, it is still been determined whether digital transformation will become a driving force for firms to assume CER. Based on panel data of Chinese listed firms in polluting industries, this article empirically tests whether and how digital transformation affects CER. The results show that digital transformation significantly motivates firms to assume more CER, especially for state‐owned and large‐scale firms and those located in the western region and ordinary‐level cities. The influence mechanism behind the relationship reveals that digital transformation improves financing ability and further encourages firms to assume CER. However, the effect is only short‐term and has no significant influence on the long‐term financing ability. Further research shows that regional differences in environmental governance pressure can strengthen the effect of digital transformation on CER. Our empirical findings provide policy implications for firms' digital transformation and sustainable development.

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Section: Expected Effect Of Digital Transformation On Cermentioning

confidence: 99%

Corporate environmental responsibility in polluting firms: Does digital transformation matter?

Lin

Zhang

2023

Corp Soc Responsibility Env

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“…Third, the development of the digital economy can boost market competition. Due to fierce market competition, enterprises will invest more in environmental protection and strengthen corporate governance, so as to avoid excessive pollution caused by agency problems [ 38 ] and personal decisions made by corporate management [ 12 ]. Digital economy has spawned new technologies and new models, creating new demands and changing supply markets.…”

Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%

“…And an effective corporate governance can avoid excessive corporate pollution caused by personal decisions made by corporate management such as CEOs [ 12 ]. At the same time, it can also avoid the agency problem hindering the enterprise’s emission reduction and environment investment [ 38 ]. Therefore, market competition, as an external factor, can effectively promote CECER.…”

Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%

Can Digital Economy Promote Energy Conservation and Emission Reduction in Heavily Polluting Enterprises? Empirical Evidence from China

Zhang

Kuang

2022

IJERPH

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This paper examines the impact of digital economy on corporate energy conservation and emission reduction (CECER) using China’s A-share listed heavily polluting enterprises from 2012 to 2019 as a sample. Our results show that: (1) Digital economy can significantly increase CECER, and this effect is significant for mining and manufacturing enterprises, and less significant for power, heat production and supply enterprises; (2) Mechanism research shows that digital economy promotes CECER through enhancing the green technology innovation capability, easing the financing constraints, and boosting market competition; (3) Heterogeneity research indicates that the promotion of digital economy to CECER is more significant in economically developed regions and regions with less financial pressure from local governments. This paper clarifies the factors influencing CECER and provides empirical evidence for achieving digital economy development and government goals for CECER.

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“…Karassin and Bar-Haim (2016) Differences in firm-level characteristics can result in differences in firms' CER practises (Karassin & Bar-Haim, 2016). Relevant firm features include corporate size (González-Benito & González-Benito, 2006), corporate governance (Tan et al, 2017), board gender diversity (Wang, Wilson, & Li, 2021), related party transactions (Choi et al, 2021), zombie firms (Han et al, 2019), corporate financialisaton (Li et al, 2020) and the characteristics of top managers in the firm, such as whether the chief executive officer (CEO) is politically connected (Zhang, 2017), CEO narcissism (Al-Shammari et al, 2019, CEO tenure (Chen et al, 2019) and executives' hometown identification (Rong et al, 2021).…”

Section: Determinants Of Cermentioning

confidence: 99%

“…Stakeholders are paying more and more attention to environmental issues (Camilleri, 2022; González‐Benito & González‐Benito, 2006; Zhong et al, 2022). One of the most important stakeholders in the area of environmental problems is the government, which generally exerts coercive pressures on firms to fulfil CER obligations (Choi et al, 2021; Zhu & Sarkis, 2007). Liu et al (2010) point out that the government can have a significant effect on firms' environmental practises.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The impact of penalties for environmental violations on corporate environmental responsibility

Ramanathan

2022

Sustainable Development

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Identifying firms' responses to the imposition of penalties for environmental violations in the context of corporate environmental responsibility (CER) is important to understand the impact of environmental penalties (EPs) and improve their design.Using a research sample consisting of Chinese listed firms in heavy polluting sectors from 2014 to 2020, we investigate whether and how penalties for environmental violations can affect subsequent CER engagement. The empirical results show that imposing one or more EPs on a firm has positive effects on the firm's subsequent CER practises. Our results remain robust after a series of tests. We also find that the role of EPs in promoting CER is more pronounced in firms that receive more media coverage, have weak political connections, and operate in less competitive industries.Further analysis shows that the dynamic effect of EPs on CER engagement persists at least 2 years after the imposition of the penalty and that EPs can stimulate CER practises through both symbolic and substantive actions.

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Related party transactions and corporate environmental responsibility

Cited by 10 publications

References 17 publications

Corporate environmental responsibility in polluting firms: Does digital transformation matter?

Corporate environmental responsibility in polluting firms: Does digital transformation matter?

Can Digital Economy Promote Energy Conservation and Emission Reduction in Heavily Polluting Enterprises? Empirical Evidence from China

The impact of penalties for environmental violations on corporate environmental responsibility

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