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Environmental Management Under Subnational Institutional Constraints

Author

Listed:
  • Shujun Ding

    (University of Ottawa)

  • Chunxin Jia

    (Peking University)

  • Zhenyu Wu

    (University of Manitoba)

  • Wenlong Yuan

    (University of Lethbridge)

Abstract

This study uses the institutional perspective to examine the interaction effects between the subnational institutional context and firm-level parameters on corporate environmental behaviors, based on a unique cross-sectional data set of private firms compiled from three different sources in China. Our results suggest that both enforcement stringency of environmental regulations at the provincial-level and private firms’ foreign ownership negatively affect compensation fees, which are levies charged for firms’ emissions. Enforcement stringency also moderates the firm-level relationship between foreign ownership and compensation fees, but such a cross-level moderating effect holds only for private firms with non-HMT (Hong Kong, Macau, or Taiwan) investments.

Suggested Citation

  • Shujun Ding & Chunxin Jia & Zhenyu Wu & Wenlong Yuan, 2016. "Environmental Management Under Subnational Institutional Constraints," Journal of Business Ethics, Springer, vol. 134(4), pages 631-648, April.
    • Handle: RePEc:kap:jbuset:v:134:y:2016:i:4:d:10.1007_s10551-014-2388-0
    DOI: 10.1007/s10551-014-2388-0
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