IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v20y2023i5p4528-d1087066.html
   My bibliography  Save this article

Corporate Sustainability Development Strategy and Corporate Environmental Governance—The Moderating Role of Corporate Environmental Investments

Author

Listed:
  • Xiangyuan Ao

    (School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Tze San Ong

    (School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia
    Department of Business Administration, Daffodil International University, Dhaka 1341, Bangladesh)

  • Boon Heng Teh

    (Faculty of Management, Multimedia University Malaysia, Cyberjaya 63100, Malaysia)

Abstract

Environmental degradation and ecological devastation have become widespread global concerns in recent years as a result of the expansion of the international economy. China’s rapid economic development has been accompanied by a sloppy economic growth model that has damaged the local ecological environment. The Chinese government intends to improve the ecological environment by the end of 2020 in an effort to direct and improve these environmental issues. The strictest environmental laws became effective in 2015. In light of this, this research uses panel data analysis to examine the environmental strategy and environmental governance of Chinese corporations. This article analyses 14,512 samples of listed mainland Chinese enterprises from 2015 to 2020. This research investigates the connection between Corporate Sustainability Development Strategy and Corporate Environmental Governance, as well as the moderating effect of Corporate Environmental Investments.

Suggested Citation

  • Xiangyuan Ao & Tze San Ong & Boon Heng Teh, 2023. "Corporate Sustainability Development Strategy and Corporate Environmental Governance—The Moderating Role of Corporate Environmental Investments," IJERPH, MDPI, vol. 20(5), pages 1-15, March.
  • Handle: RePEc:gam:jijerp:v:20:y:2023:i:5:p:4528-:d:1087066
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/20/5/4528/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/20/5/4528/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sadok El Ghoul & Omrane Guedhami & Hakkon Kim & Kwangwoo Park, 2018. "Corporate Environmental Responsibility and the Cost of Capital: International Evidence," Journal of Business Ethics, Springer, vol. 149(2), pages 335-361, May.
    2. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    3. Yanhong Yuan & Bowen Zhang & Lei Wang & Li Wang, 2022. "Low-Carbon Strategies Considering Corporate Environmental Responsibility: Based on Carbon Trading and Carbon Reduction Technology Investment," Sustainability, MDPI, vol. 14(11), pages 1-18, May.
    4. Juhyun Jung & Kathleen Herbohn & Peter Clarkson, 2018. "Carbon Risk, Carbon Risk Awareness and the Cost of Debt Financing," Journal of Business Ethics, Springer, vol. 150(4), pages 1151-1171, July.
    5. repec:eme:aaaj00:09513571011054927 is not listed on IDEAS
    6. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    7. Renato Garzón-Jiménez & Ana Zorio-Grima, 2021. "Effects of Carbon Emissions, Environmental Disclosures and CSR Assurance on Cost of Equity in Emerging Markets," Sustainability, MDPI, vol. 13(2), pages 1-11, January.
    8. Wang, Shu-Hong & Song, Ma-Lin, 2014. "Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011," Energy Policy, Elsevier, vol. 74(C), pages 395-405.
    9. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    10. Alam, Md. Samsul & Atif, Muhammad & Chien-Chi, Chu & Soytaş, Uğur, 2019. "Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries," Energy Economics, Elsevier, vol. 78(C), pages 401-411.
    11. Pekovic, Sanja & Grolleau, Gilles & Mzoughi, Naoufel, 2018. "Environmental investments: Too much of a good thing?," International Journal of Production Economics, Elsevier, vol. 197(C), pages 297-302.
    12. Liu, Haiyue & Jiang, Jie & Xue, Rui & Meng, Xiaofan & Hu, Shiyang, 2022. "Corporate environmental governance scheme and investment efficiency over the course of COVID-19," Finance Research Letters, Elsevier, vol. 47(PB).
    13. Youtang Zhang & Hagos Mesfin Berhe, 2022. "The Impact of Green Investment and Green Marketing on Business Performance: The Mediation Role of Corporate Social Responsibility in Ethiopia’s Chinese Textile Companies," Sustainability, MDPI, vol. 14(7), pages 1-24, March.
    14. Abid Rashid Gill & Kuperan K. Viswanathan & Sallahuddin Hassan, 2018. "A test of environmental Kuznets curve (EKC) for carbon emission and potential of renewable energy to reduce green house gases (GHG) in Malaysia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(3), pages 1103-1114, June.
    15. J. Augusto Felício & Ricardo Rodrigues & Vitor Caldeirinha, 2021. "Green Shipping Effect on Sustainable Economy and Environmental Performance," Sustainability, MDPI, vol. 13(8), pages 1-15, April.
    16. Wei Peng & Baogui Xin & Yekyung Kwon, 2019. "Optimal Strategies of Product Price, Quality, and Corporate Environmental Responsibility," IJERPH, MDPI, vol. 16(23), pages 1-24, November.
    17. Garel, Alexandre & Petit-Romec, Arthur, 2021. "Investor rewards to environmental responsibility: Evidence from the COVID-19 crisis," Journal of Corporate Finance, Elsevier, vol. 68(C).
    18. Bostian, Moriah & Färe, Rolf & Grosskopf, Shawna & Lundgren, Tommy, 2016. "Environmental investment and firm performance: A network approach," Energy Economics, Elsevier, vol. 57(C), pages 243-255.
    19. Steven Toms, 2010. "Value, profit and risk: accounting and the resource‐based view of the firm," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(5), pages 647-670, June.
    20. HaiYue Liu & Aqsa Manzoor & CangYu Wang & Lei Zhang & Zaira Manzoor, 2020. "The COVID-19 Outbreak and Affected Countries Stock Markets Response," IJERPH, MDPI, vol. 17(8), pages 1-19, April.
    21. Lin, Woon Leong & Ho, Jo Ann & Sambasivan, Murali & Yip, Nick & Mohamed, Azali Bin, 2021. "Influence of green innovation strategy on brand value: The role of marketing capability and R&D intensity," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    22. Shui, Xiaolong & Zhang, Minhao & Smart, Palie & Ye, Fei, 2022. "Sustainable corporate governance for environmental innovation: A configurational analysis on board capital, CEO power and ownership structure," Journal of Business Research, Elsevier, vol. 149(C), pages 786-794.
    23. Wan, Daoxia & Xue, Rui & Linnenluecke, Martina & Tian, Jinfang & Shan, Yuli, 2021. "The impact of investor attention during COVID-19 on investment in clean energy versus fossil fuel firms," Finance Research Letters, Elsevier, vol. 43(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Haiyue & Jiang, Jie & Xue, Rui & Meng, Xiaofan & Hu, Shiyang, 2022. "Corporate environmental governance scheme and investment efficiency over the course of COVID-19," Finance Research Letters, Elsevier, vol. 47(PB).
    2. Kabir, Md Nurul & Rahman, Sohanur & Rahman, Md Arifur & Anwar, Mumtaheena, 2021. "Carbon emissions and default risk: International evidence from firm-level data," Economic Modelling, Elsevier, vol. 103(C).
    3. Mohammad Dulal Miah & Rashedul Hasan & Mohammed Usman, 2021. "Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    4. Ben Lahouel, Béchir & Ben Zaied, Younes & Managi, Shunsuke & Taleb, Lotfi, 2022. "Re-thinking about U: The relevance of regime-switching model in the relationship between environmental corporate social responsibility and financial performance," Journal of Business Research, Elsevier, vol. 140(C), pages 498-519.
    5. Qian, Kun & Shi, Bingjie & Song, Yunling & Wu, Hao, 2023. "ESG performance and loan contracting in an emerging market," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    6. Safiullah, Md & Kabir, Md. Nurul & Miah, Mohammad Dulal, 2021. "Carbon emissions and credit ratings," Energy Economics, Elsevier, vol. 100(C).
    7. Michael Peneder & Spyros Arvanitis & Christian Rammer & Tobias Stucki & Martin Wörter, 2022. "Policy instruments and self-reported impacts of the adoption of energy saving technologies in the DACH region," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 369-404, May.
    8. Andr� Betzer & Markus Doumet & Ulf Rinne, 2013. "How policy changes affect shareholder wealth: the case of the Fukushima Dai-ichi nuclear disaster," Applied Economics Letters, Taylor & Francis Journals, vol. 20(8), pages 799-803, May.
    9. Shu-Hong Wang & Ma-Lin Song & Tao Yu, 2019. "Hidden Carbon Emissions, Industrial Clusters, and Structure Optimization in China," Computational Economics, Springer;Society for Computational Economics, vol. 54(4), pages 1319-1342, December.
    10. Zhice Cheng & Xinyuan Chen & Huwei Wen, 2022. "How Does Environmental Protection Tax Affect Corporate Environmental Investment? Evidence from Chinese Listed Enterprises," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    11. Petra Andries & Ute Stephan, 2019. "Environmental Innovation and Firm Performance: How Firm Size and Motives Matter," Sustainability, MDPI, vol. 11(13), pages 1-17, June.
    12. Massimo Mariani & Fabio Pizzutilo & Alessandra Caragnano & Marianna Zito, 2021. "Does it pay to be environmentally responsible? Investigating the effect on the weighted average cost of capital: Environmental commitment and the cost of capital," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1854-1869, November.
    13. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    14. Everett, Tim & Ishwaran, Mallika & Ansaloni, Gian Paolo & Rubin, Alex, 2010. "Economic growth and the environment," MPRA Paper 23585, University Library of Munich, Germany.
    15. Chen, Changhua & Luo, Yuqing & Zou, Hong & Huang, Junbing, 2023. "Understanding the driving factors and finding the pathway to mitigating carbon emissions in China's Yangtze River Delta region," Energy, Elsevier, vol. 278(PB).
    16. Nguyen Phong Nguyen & Samuel Adomako, 2021. "Environmental proactivity, competitive strategy, and market performance: The mediating role of environmental reputation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2008-2020, May.
    17. Anelí Bongers, 2020. "The Environmental Kuznets Curve and the Energy Mix: A Structural Estimation," Energies, MDPI, vol. 13(10), pages 1-21, May.
    18. Jassem Suaad & Zakaria Zarina & Che Azmi Anna, 2020. "Sustainability Balanced Scorecard Architecture and Environmental Investment Decision-Making," Foundations of Management, Sciendo, vol. 12(1), pages 193-210, January.
    19. Spyros Arvanitis & Michael Peneder & Christian Rammer & Tobias Stucki & Martin Wörter, 2016. "Competitiveness and ecological impacts of green energy technologies: firm-level evidence for the DACH region," KOF Working papers 16-420, KOF Swiss Economic Institute, ETH Zurich.
    20. Brice Foulon & Sylvain Marsat, 2023. "Does environmental footprint influence the resilience of firms facing environmental penalties?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6154-6168, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:20:y:2023:i:5:p:4528-:d:1087066. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.