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Senior Executives' Political Connections and Corporate Environmental Behavior—Empirical Research From the Chinese A‐Share Market

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  • Jiafeng Zong
  • Man Guo
  • Zongjian Lin
  • Qi Yang

Abstract

This thesis analyzed the cross‐section data of 630 non‐financial listed enterprises and adopts a logit model to estimate the relationships between political relations and corporate environmental behavior. The paper also adopts an ordered logit method to estimate the marginal impact of political connections to enterprises’ disclosure of information on environment and sustainable development. Through analysis, this thesis found that political connections lower the probability for enterprises to disclose information on environment and sustainable development. With the Level III scoring method, this article classified the performances of disclosing corporate environmental information into three levels. It is found that corporate political connections increase the probability for enterprises not to disclose any environmental information and lower the probability for enterprises to refer to GRI Sustainability Reporting Guidelines. 该论文分析了630 个非金融上市企业的截面数据, 并采用Logit 模型估测政治关系与企业环境行为之间的关系。本文还采用有序Logit 法估计企业信息披露的政治人脉对环境和可持续发展产生的边际效应。经过分析, 该论文发现, 政治人脉降低了企业披露有关环境和可持续发展方面的信息的可能性。通过采用Level III 评分法, 本文将披露企业环境信息的表现分为三个等级。结果发现, 企业的政治人脉增加了企业不披露任何环境信息的可能性, 并降低了企业参照GRI《可持续发展报告指南》的可能性. Esta tesis analizó los datos de la sección transversal de 630 empresas que no cotizan en bolsa y adopta el modelo Logit para estimar las relaciones entre las relaciones políticas y el comportamiento del entorno corporativo. El documento también adopta el método Logit ordenado para estimar el impacto marginal de las conexiones políticas en la divulgación de información de las empresas sobre el medio ambiente y el desarrollo sostenible. A través del análisis, esta tesis encontró que las conexiones políticas reducen la probabilidad de que las empresas divulguen información sobre el medio ambiente y el desarrollo sostenible. Con el método de calificación de Nivel III, este artículo clasificó las actuaciones de divulgación de información ambiental corporativa en tres niveles. Se descubrió que las conexiones políticas corporativas aumentan la probabilidad de que las empresas no divulguen información ambiental y disminuyen la probabilidad de que las empresas se refieran a las Pautas de informes de sostenibilidad de GRI.

Suggested Citation

  • Jiafeng Zong & Man Guo & Zongjian Lin & Qi Yang, 2020. "Senior Executives' Political Connections and Corporate Environmental Behavior—Empirical Research From the Chinese A‐Share Market," Review of Policy Research, Policy Studies Organization, vol. 37(4), pages 556-571, July.
    • Handle: RePEc:bla:revpol:v:37:y:2020:i:4:p:556-571
    DOI: 10.1111/ropr.12382
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    References listed on IDEAS

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    2. Zhang, Dongyang, 2023. "Can environmental monitoring power transition curb corporate greenwashing behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 199-218.

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