IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i10p8368-d1152351.html
   My bibliography  Save this article

Effect of Regional Cultural Diversity in Senior Executives on Environmental Protection Investment

Author

Listed:
  • Yibing Li

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Yongmei Cui

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Jue Huang

    (Graduate School, Guizhou University of Finance and Economics, Guiyang 550025, China)

Abstract

With the increase in the seriousness of environmental issues and investors’ increasing concern for corporate environmental performance, more and more scholars are paying attention to the impact of executive diversification on corporate investment decisions. This study empirically examines the impact of regional cultural diversity in executive teams on corporate environmental investment and its moderating effect on different industries and regions, using companies listed in China from 2009 to 2019 as research samples, from the perspective of informal cultural systems. The research results indicate that: regional cultural diversity in executive teams can significantly promote corporate environmental investment; regional cultural diversity in executives is more conducive to increasing environmental investment in competitive industries, while the promotion effect of environmental protection investment in monopolistic industries is not significant; and diversity in regional culture in top management teams is more conducive to the promotion of environmental investment by coastal enterprises, while the promotion of environmental investment by non-coastal enterprises is not significant.

Suggested Citation

  • Yibing Li & Yongmei Cui & Jue Huang, 2023. "Effect of Regional Cultural Diversity in Senior Executives on Environmental Protection Investment," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8368-:d:1152351
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/10/8368/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/10/8368/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pisani, Niccolò & Muller, Alan & Bogăţan, Paula, 2018. "Top Management Team Internationalization and Firm-level Internationalization: The Moderating Effects of Home-region Institutional Diversity and Firm Global Focus," Journal of International Management, Elsevier, vol. 24(3), pages 239-256.
    2. Abdel-Rahim, Heba Y. & Lorenz, Melanie P. & Zaher, Angie Abdel, 2022. "How do cultural difference, cultural exposure, and CQ affect interpretations of trust from contract choices? Evidence from dyadic cross-country experiments," Accounting, Organizations and Society, Elsevier, vol. 96(C).
    3. Feng Wei & Binyan Ding & Yu Kong, 2017. "Female Directors and Corporate Social Responsibility: Evidence from the Environmental Investment of Chinese Listed Companies," Sustainability, MDPI, vol. 9(12), pages 1-19, December.
    4. Beukers, Els & Bertolini, Luca & Te Brömmelstroet, Marco, 2014. "Using cost benefit analysis as a learning process: identifying interventions for improving communication and trust," Transport Policy, Elsevier, vol. 31(C), pages 61-72.
    5. Yuan, Rongli & Wen, Wen, 2018. "Managerial foreign experience and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 48(C), pages 752-770.
    6. Jana Drechsler & Jan-Thomas Bachmann & Andreas Engelen, 2019. "The effect of immigrants in the founding team on the international attention of new ventures," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 305-333, September.
    Full references (including those not matched with items on IDEAS)

    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. Ponomareva, Yuliya & Uman, Timur & Bodolica, Virginia & Wennberg, Karl, 2022. "Cultural diversity in top management teams: Review and agenda for future research," Journal of World Business, Elsevier, vol. 57(4).
    2. Li, Wanfu & Jiang, Mengmeng & Zhang, Xuejiao & Wang, Yu & Qu, Xiaoyi, 2023. "Does foreign experience of top management affect corporate environmental responsibility? Evidence from China," Economic Modelling, Elsevier, vol. 122(C).
    3. Gu, Leilei & Liu, Zhongyang & Xu, Danyang, 2023. "The risk-mitigating role of corporate social responsibility in Chinese listed heavy-polluting companies: An extreme event experience perspective," Energy Economics, Elsevier, vol. 125(C).
    4. Ting, Hsiu-I & Wang, Ming-Chun & Yang, J. Jimmy & Tuan, Kai-Wen, 2021. "Technical expert CEOs and corporate innovation," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    5. Dongying Du & Xiaojian Tang & Huaiming Wang & Joseph H. Zhang & Stephanie Tsui & Dongjie Lin, 2022. "CEO organizational identification and corporate innovation investment," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 4185-4217, September.
    6. Su, Zhong-qin & Xiao, Zuoping & Yu, Lin, 2019. "Do political connections enhance or impede corporate innovation?," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 94-110.
    7. Yu Wang & Yetaotao Qiu & Yi Luo, 2022. "CEO foreign experience and corporate sustainable development: Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2036-2051, July.
    8. Zhice Cheng & Xinyuan Chen & Huwei Wen, 2022. "How Does Environmental Protection Tax Affect Corporate Environmental Investment? Evidence from Chinese Listed Enterprises," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    9. Luo, Kun & Lim, Edwin KiaYang & Qu, Wen & Zhang, Xuan, 2021. "Board cultural diversity, government intervention and corporate innovation effectiveness: Evidence from China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(2).
    10. Haroon ur Rashid Khan & Waqas Bin Khidmat & Muhammad Danish Habib & Sadia Awan, 2022. "Academic directors in board and corporate expropriation: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 372-397, March.
    11. Xue-Zhou Zhao & Jun Chen & Feng-Wen Chen & Wei Wang & Senmao Xia, 2020. "How High-Polluting Firms Suffer from Being Distracted form Intended Purpose: A Corporate Social Responsibility Perspective," IJERPH, MDPI, vol. 17(24), pages 1-29, December.
    12. Ximeng Jia & Chen Chen & Yaoqin Li & Mengyu Hao, 2023. "From childhood poverty to good boss: the impact of CEO's early-life experience on corporate employee responsibility," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 1937-1961, November.
    13. Jialong Wang & Ran Cui, 2023. "Does CEO's foreign experience promote export performance? Evidence from China," Asian Economic Journal, East Asian Economic Association, vol. 37(3), pages 326-345, September.
    14. He, Feng & Yan, Yulin & Hao, Jing & Wu, Ji (George), 2022. "Retail investor attention and corporate green innovation: Evidence from China," Energy Economics, Elsevier, vol. 115(C).
    15. Wunhong Su & Xingxing Hu & Liuzhen Zhang, 2023. "Association Between Directors With Foreign Experience and Firms’ Environmental Disclosure," SAGE Open, , vol. 13(4), pages 21582440231, December.
    16. Ullah, Irfan & Jebran, Khalil & Umar, Muhammad & Bin Yousaf, Umair, 2023. "Chief executive officer trustworthiness and green innovation," Research in International Business and Finance, Elsevier, vol. 64(C).
    17. Ruichen Ma, 2023. "The sustainable development trend in environmental, social, and governance issues and stakeholder engagement: Evidence from mergers and acquisitions in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3159-3173, November.
    18. Jiayi Zheng & Yushu Zhu, 2022. "Chair–CEO trust and firm performance," Australian Journal of Management, Australian School of Business, vol. 47(1), pages 163-198, February.
    19. Wu, Jie & Ang, Siah Hwee, 2020. "Network complementaries in the international expansion of emerging market firms," Journal of World Business, Elsevier, vol. 55(2).
    20. Chao Tu & Yingfang Shi, 2023. "Market-Incentive Environmental Regulation and the Quality of Corporate Innovation," Sustainability, MDPI, vol. 15(7), pages 1-17, March.

    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:jsusta:v:15:y:2023:i:10:p:8368-:d:1152351. 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.