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The impact of environmental regulation on green image management of supply chain: Evidence from China

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  • Li, Donghui
  • Zhang, Zhanxiang
  • Xu, Rui

Abstract

This paper explores the spillover effects of environmental regulation on supply chain management in emerging markets. Employing China's low-carbon city pilot policy (LCCP), our difference-in-differences analysis shows that environmental regulation promotes firms to conduct green image management of the supply chain. Mechanism tests indicate that this effect is driven by female executives, directors with environmental backgrounds, and financial support. Moreover, firms’ financial performance is enhanced after the green image management of the supply chain. Our study provides a unique perspective on environmental regulation's spillover effects in emerging markets, with great practical significance for realizing the actual impacts of environmental regulation.

Suggested Citation

  • Li, Donghui & Zhang, Zhanxiang & Xu, Rui, 2025. "The impact of environmental regulation on green image management of supply chain: Evidence from China," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612324017525
    DOI: 10.1016/j.frl.2024.106723
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental regulation; Low-carbon city pilot policy; Green image management; Supply chain;
    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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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