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Environmental protection interview and corporate environmental investment: Evidence from China

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  • Zhang, Jiewei
  • Yang, Yi

Abstract

This study examines the impact of a new government’s environmental governance tool, namely, the environmental protection interview system, on corporate environmental investment. Using Chinese A-share companies and a difference-in-differences design, we show that enhanced environmental law enforcement significantly boosts corporate investment in environmental initiatives. Mechanism tests indicate that this effect works in two ways: it raises public awareness of environmental issues and improves green awareness among internal management. Further analysis shows that the policy’s positive impact is most pronounced in non-state-owned sectors, manufacturing industries, and companies operating in highly marketized regions. These results highlight the relationship between macro-level environmental policies and corporate investment in green initiatives, and they provide policy implications for strengthening environmental supervision and enforcement and improving the environmental law enforcement system.

Suggested Citation

  • Zhang, Jiewei & Yang, Yi, 2025. "Environmental protection interview and corporate environmental investment: Evidence from China," Research in International Business and Finance, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:riibaf:v:74:y:2025:i:c:s0275531924004872
    DOI: 10.1016/j.ribaf.2024.102694
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