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Biodiversity risk, corporate governance, and firm performance: empirical evidence from China

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  • Khan, Nasir
  • Lucey, Brian

Abstract

We examined the relationship between China corporate biodiversity exposure, corporate governance attributes and firm performance in Chinese A share listed companies from 2014 to 2022. The findings of the panel baseline regression models indicate a negative and significant link between biodiversity risk and firm performance, that is, Tobin’s q and returns on assets. Similarly, the outcomes show a negative and significant relationship between biodiversity risk and board size, board independence, and institutional ownership, while it is positive and significant for auditor tenure. The findings still hold after robustness and endogeneity tests using other models and an instrumental variable approach. The results have implications for policymakers, businesses, and investors.

Suggested Citation

  • Khan, Nasir & Lucey, Brian, 2026. "Biodiversity risk, corporate governance, and firm performance: empirical evidence from China," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s1544612325023487
    DOI: 10.1016/j.frl.2025.109099
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    References listed on IDEAS

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