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The relationship between public participation in environmental governance and corporations’ environmental violations

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  • Zhang, Hao
  • Tao, Lunchen
  • Yang, Biyun
  • Bian, Wenlong

Abstract

We explore the relationship in China between public participation in environmental governance and corporations’ environmental violations. We do so by collecting data on unlisted corporations’ environmental violations from 2012 to 2015 and manually matching these data with the number of environment-related proposals made by People's Congress deputies of different provinces. We find that public participation in environmental governance significantly decreases the number of environmental violations by corporations. We use the Eco-environmental Credit Policy as a policy shock in a difference-in-differences regression to confirm our finding. We conclude that public participation in environmental governance increases the number of local environmental regulations and thus restrains environmental violations by corporations.

Suggested Citation

  • Zhang, Hao & Tao, Lunchen & Yang, Biyun & Bian, Wenlong, 2023. "The relationship between public participation in environmental governance and corporations’ environmental violations," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000508
    DOI: 10.1016/j.frl.2023.103676
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    References listed on IDEAS

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    1. Birindelli, Giuliana & Miazza, Aline & Paimanova, Viktoriia & Palea, Vera, 2023. "Just “blah blah blah”? Stock market expectations and reactions to COP26," International Review of Financial Analysis, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Public participation; Environmental governance; Corporations’ environmental violations; Environmental regulations;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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