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Internal and External Cultivation to Drive Enterprises’ Green Transformation: Dual Perspectives of Vertical Supervision and Environmental Self-Discipline

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  • Huixiang Zeng

    (Business School, Central South University, Changsha 410083, China)

  • Yuyao Shao

    (Business School, Central South University, Changsha 410083, China)

  • Ning Ding

    (Business School, Central South University, Changsha 410083, China)

  • Limin Zheng

    (Business School, Central South University, Changsha 410083, China)

  • Jinling Zhao

    (Economics School, Shenzhen Polytechnic University, Shenzhen 518055, China)

Abstract

Central Environmental Protection Inspection (CEPI) is a major step in China’s environmental vertical supervision reform. With the multi-period Difference-in-Differences method, we assess the impact of CEPI on enterprise green transformation. In addition, we further explore the impact of enterprise environmental self-discipline. The results show that CEPI significantly promotes enterprise green transformation, and this effect on governance is further strengthened by environmental self-discipline. The synergistic governance effect of compound environmental regulation is pronounced, particularly in enterprises lacking government–enterprise relationships and in areas covered by CEPI “look back” initiatives and where local governments rigorously enforce environmental laws. The mechanism analysis reveals that CEPI mainly promotes enterprise green transformation by improving executive green cognition, boosting investment in environmental protection, and enhancing green innovation efficiency. This study provides a fresh perspective on analyzing the governance impact of CEPI and provides valuable insights for improving multi-collaborative environmental governance systems.

Suggested Citation

  • Huixiang Zeng & Yuyao Shao & Ning Ding & Limin Zheng & Jinling Zhao, 2025. "Internal and External Cultivation to Drive Enterprises’ Green Transformation: Dual Perspectives of Vertical Supervision and Environmental Self-Discipline," Sustainability, MDPI, vol. 17(15), pages 1-35, August.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:7062-:d:1717151
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    Cited by:

    1. Jianbang Xu & Yimin Wang, 2025. "Exploring New Green Frontiers? How CEO Green and Technological Experience Shapes Firm Ambidextrous Green Innovation," Sustainability, MDPI, vol. 17(18), pages 1-27, September.

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