IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i2p837-d723285.html
   My bibliography  Save this article

Does Overseas Investment Raise Corporate Environmental Protection? Evidence from Chinese A-List Companies

Author

Listed:
  • Quan-Jing Wang

    (School of Business, Zhengzhou University, 100 Science Avenue, Gaoxin District, Zhengzhou 450001, China)

  • Qiong Shen

    (School of Business, Zhengzhou University, 100 Science Avenue, Gaoxin District, Zhengzhou 450001, China)

  • Yong Geng

    (School of Environment and Science Engineering, Shanghai Jiaotong University, 800 Dongchuan Road, Minhang District, Shanghai 200240, China)

  • Dan-Yang Li

    (School of Business, Shaanxi Normal University, 620 West Chang’an Avenue, Chang’an District, Xi’an 710069, China)

Abstract

This paper uses the relevant data of China’s listed companies from 2010 to 2018 to test the impact of overseas investment on corporate environmental protection and further examines whether the heterogeneity of the company and the heterogeneity of the host country changes this effect. The research results show that the environmental protection of overseas investment companies is significantly higher than that of other companies. The impact of overseas investment on corporate environmental protection is dynamic, and it only helps improve corporate environmental protection after three years of investment. This article is conducive to causally identifying the logical relationship between overseas investment and corporate environmental protection. The policy significance is that the government can rationally guide companies to invest abroad, and oversea investment will help enhance corporate environmental protection.

Suggested Citation

  • Quan-Jing Wang & Qiong Shen & Yong Geng & Dan-Yang Li, 2022. "Does Overseas Investment Raise Corporate Environmental Protection? Evidence from Chinese A-List Companies," IJERPH, MDPI, vol. 19(2), pages 1-15, January.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:2:p:837-:d:723285
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/2/837/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/2/837/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cole, Matthew A. & Elliott, Robert J.R. & Shimamoto, Kenichi, 2006. "Globalization, firm-level characteristics and environmental management: A study of Japan," Ecological Economics, Elsevier, vol. 59(3), pages 312-323, September.
    2. Wang, Quan-Jing & Feng, Gen-Fu & Wang, Hai-Jie & Chang, Chun-Ping, 2021. "The impacts of democracy on innovation: Revisited evidence," Technovation, Elsevier, vol. 108(C).
    3. Edward Manderson & Richard Kneller, 2012. "Environmental Regulations, Outward FDI and Heterogeneous Firms: Are Countries Used as Pollution Havens?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(3), pages 317-352, March.
    4. Zhou, Dongsheng & Li, Shaomin & Tse, David K., 2002. "The impact of FDI on the productivity of domestic firms: the case of China," International Business Review, Elsevier, vol. 11(4), pages 465-484, August.
    5. Valentina Marano & Peter Tashman & Tatiana Kostova, 2017. "Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 386-408, April.
    6. Gorodnichenko, Yuriy & Svejnar, Jan & Terrell, Katherine, 2014. "When does FDI have positive spillovers? Evidence from 17 transition market economies," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 954-969.
    7. Jie Zhang & Yinxiao Qu & Yun Zhang & Xiuzhen Li & Xiao Miao, 2019. "Effects of FDI on the Efficiency of Government Expenditure on Environmental Protection Under Fiscal Decentralization: A Spatial Econometric Analysis for China," IJERPH, MDPI, vol. 16(14), pages 1-19, July.
    8. Rema Hanna, 2010. "US Environmental Regulation and FDI: Evidence from a Panel of US-Based Multinational Firms," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 158-189, July.
    9. Demena, Binyam Afewerk & Afesorgbor, Sylvanus Kwaku, 2020. "The effect of FDI on environmental emissions: Evidence from a meta-analysis," Energy Policy, Elsevier, vol. 138(C).
    10. Xinfeng Jiang & Ahsan Akbar, 2018. "Does Increased Representation of Female Executives Improve Corporate Environmental Investment? Evidence from China," Sustainability, MDPI, vol. 10(12), pages 1-19, December.
    11. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    12. Wang, Danny T. & Gu, Flora F. & Tse, David K. & Yim, Chi Kin (Bennett), 2013. "When does FDI matter? The roles of local institutions and ethnic origins of FDI," International Business Review, Elsevier, vol. 22(2), pages 450-465.
    13. Lutao Ning & Fan Wang, 2018. "Does FDI Bring Environmental Knowledge Spillovers to Developing Countries? The Role of the Local Industrial Structure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 381-405, October.
    14. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    15. Baomin Dong & Jiong Gong & Xin Zhao, 2012. "FDI and environmental regulation: pollution haven or a race to the top?," Journal of Regulatory Economics, Springer, vol. 41(2), pages 216-237, April.
    16. Yan-Leung Cheung & Dongmin Kong & Weiqiang Tan & Wenming Wang, 2015. "Being Good When Being International in an Emerging Economy: The Case of China," Journal of Business Ethics, Springer, vol. 130(4), pages 805-817, September.
    17. Sapkota, Pratikshya & Bastola, Umesh, 2017. "Foreign direct investment, income, and environmental pollution in developing countries: Panel data analysis of Latin America," Energy Economics, Elsevier, vol. 64(C), pages 206-212.
    18. Shijin Wang, 2017. "Impact of FDI on energy efficiency: an analysis of the regional discrepancies in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(2), pages 1209-1222, January.
    19. Valentina Marano & Tatiana Kostova, 2016. "Unpacking the Institutional Complexity in Adoption of CSR Practices in Multinational Enterprises," Journal of Management Studies, Wiley Blackwell, vol. 53(1), pages 28-54, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zezhong Li & Qian Zhou, 2024. "Does Corporate Behavior Related to the Overseas Market Promote Enterprises’ Green Transformation?—Evidence from China," Sustainability, MDPI, vol. 16(11), pages 1-21, May.
    2. Qingmei Xue & Fuyou Li, 2024. "Outward Foreign Direct Investment and Corporate Environmental Investment: Competition or Cooperation?," Sustainability, MDPI, vol. 16(14), pages 1-20, July.

    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. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    2. Shi Wang & Wen Zhang & Hua Wang & Jue Wang & Mu-Jun Jiang, 2021. "How Does Income Inequality Influence Environmental Regulation in the Context of Corruption? A Panel Threshold Analysis Based on Chinese Provincial Data," IJERPH, MDPI, vol. 18(15), pages 1-18, July.
    3. Uddin, Mirza Md Moyen & Sharif, Taimur & Islam, Abe Reza Mohammad & Abedin, Mohammad Zoynul, 2024. "Moderating impact of FDI on the growth-environment nexus in the pre-COVID-19 eras," Research in International Business and Finance, Elsevier, vol. 67(PA).
    4. Sylwia Bialek & Alfons J. Weichenrieder, 2021. "Do Stringent Environmental Policies Deter FDI? M&A versus Greenfield," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 603-636, November.
    5. Vikrant Shirodkar & Namita Shete, 2021. "The Impact of Domestic CSR on the Internationalisation of Emerging-Market Multinational Enterprises: Evidence from India," Management International Review, Springer, vol. 61(6), pages 799-829, December.
    6. Ethel Ansaah Addae & Dongying Sun & Olivier Joseph Abban, 2023. "Evaluating the effect of urbanization and foreign direct investment on water use efficiency in West Africa: application of the dynamic slacks-based model and the common correlated effects mean group e," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 5867-5897, July.
    7. Zezhong Li & Qian Zhou, 2024. "Does Corporate Behavior Related to the Overseas Market Promote Enterprises’ Green Transformation?—Evidence from China," Sustainability, MDPI, vol. 16(11), pages 1-21, May.
    8. Liu, Yaping & Sadiq, Farah & Ali, Wajahat & Kumail, Tafazal, 2022. "Does tourism development, energy consumption, trade openness and economic growth matters for ecological footprint: Testing the Environmental Kuznets Curve and pollution haven hypothesis for Pakistan," Energy, Elsevier, vol. 245(C).
    9. Ren, Shenggang & Hu, Yucai & Zheng, Jingjing & Wang, Yangjie, 2020. "Emissions trading and firm innovation: Evidence from a natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    10. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    11. Wang, Chao & Zhang, Yue-Jun, 2022. "The effect of environmental regulation and skill premium on the inflow of FDI:Evidence from Chinese industrial sectors," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 227-242.
    12. Aurélien Saussay & Misato Sato, 2018. "The Impacts of Energy Prices on Industrial Foreign Investment Location: Evidence from Global Firm Level Data," Working Papers hal-03475473, HAL.
    13. Qian Wang & Zhuoya Du & Boyu Wang & Yung‐ho Chiu & Tzu‐Han Chang, 2022. "Environmental regulation and foreign direct investment attractiveness: Evidence from China provinces," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 899-917, May.
    14. Adelina-Andreea Siriteanu & Erika-Maria Doacă, 2023. "Application of ARDL modelling in global structural shocks and their dynamic impact on FDI," Journal of Financial Studies, Institute of Financial Studies, vol. 14(8), pages 181-191, May.
    15. Valentina Marano & Steve Sauerwald & Marc Essen, 2022. "The influence of culture on the relationship between women directors and corporate social performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1315-1342, September.
    16. Deng, Yuping & Wu, Yanrui & Xu, Helian, 2019. "Political turnover and firm pollution discharges: An empirical study," China Economic Review, Elsevier, vol. 58(C).
    17. Yingqi Wei & Sasa Ding & Ziko Konwar, 2022. "The two faces of FDI in environmental performance: a meta-analysis of empirical evidence in China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 20(1), pages 65-94, January.
    18. Na Yang & Jue Wang & Xiaming Liu & Lingyun Huang, 2022. "Home-country institutions and corporate social responsibility of emerging economy multinational enterprises: The belt and road initiative as an example," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 927-965, September.
    19. Pei Sun & Jonathan P. Doh & Tazeeb Rajwani & Donald Siegel, 2021. "Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1818-1853, December.
    20. Sharma, Amalesh & Moses, Aditya Christopher & Borah, Sourav Bikash & Adhikary, Anirban, 2020. "Investigating the impact of workforce racial diversity on the organizational corporate social responsibility performance: An institutional logics perspective," Journal of Business Research, Elsevier, vol. 107(C), pages 138-152.

    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:19:y:2022:i:2:p:837-:d:723285. 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.