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Leviathan Inc. and Corporate Environmental Engagement

Author

Listed:
  • Po-Hsuan Hsu

    (College of Technology Management, National Tsing Hua University, Hsinchu City 300, Taiwan)

  • Hao Liang

    (Lee Kong Chian School of Business, Singapore Management University, Singapore 178899, Singapore; European Corporate Governance Institute (ECGI), The Royal Academies of Belgium, Palace of the Academies, 1000 Brussels, Belgium)

  • Pedro Matos

    (European Corporate Governance Institute (ECGI), The Royal Academies of Belgium, Palace of the Academies, 1000 Brussels, Belgium; Darden School of Business, University of Virginia, Charlottesville, Virginia 22903)

Abstract

In a 2010 special report, The Economist magazine termed the resurgence of state-owned, publicly listed enterprises “Leviathan Inc.” and criticized the poor governance and low efficiency of these firms. We compile a new comprehensive data set of state ownership of publicly listed firms in 44 countries over the period of 2004–2017 and show that state-owned enterprises are more responsive to environmental issues. The effect is more pronounced in economies lacking energy security and strong environmental regulation, and among firms with more local operations and higher domestic government ownership. We find a similar effect on corporate social engagement but not on governance quality. These results suggest a different role for “Leviathan Inc.,” especially in dealing with environmental externalities.

Suggested Citation

  • Po-Hsuan Hsu & Hao Liang & Pedro Matos, 2023. "Leviathan Inc. and Corporate Environmental Engagement," Management Science, INFORMS, vol. 69(12), pages 7719-7758, December.
    • Handle: RePEc:inm:ormnsc:v:69:y:2023:i:12:p:7719-7758
    DOI: 10.1287/mnsc.2021.4064
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    Citations

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    Cited by:

    1. Yu, Qing & Hui, Eddie Chi-Man & Shen, Jianfu, 2024. "The real impacts of third-party certification on green bond issuances: Evidence from the Chinese green bond market," Journal of Corporate Finance, Elsevier, vol. 89(C).
    2. Wang, Zhongchao & Yu, Xiaoying & Zhang, Weimin, 2024. "Chinese-style carbon emission reduction: Micro mechanisms of state-owned enterprises," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    3. Zixun Zhou & Xinyu Zhou & Xuezhi Zhang & Wei Chen, 2025. "Judicial Waves, Ethical Shifts: Bankruptcy Courts and Corporate ESG Performance," Journal of Business Ethics, Springer, vol. 198(3), pages 537-557, May.
    4. Liu, Yeshen & Wang, Beibei & Song, Zhe, 2025. "Promoting or inhibiting: The impact of artificial intelligence application on corporate environmental performance," International Review of Financial Analysis, Elsevier, vol. 97(C).
    5. Zhang, Huili & Huang, Yibo & Zou, Zhiwei, 2024. "Does share pledging affect corporate sustainability performance? Empirical evidence from an emerging market," Emerging Markets Review, Elsevier, vol. 63(C).
    6. Tang, Haobo & Zhang, Huan & Guan, Yuzhen & Wang, Hexuan, 2024. "Is human capital risk lower in state-owned enterprises? — A textual analysis based on China's listed company annual reports," Pacific-Basin Finance Journal, Elsevier, vol. 88(C).

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