Original scientific paper
https://doi.org/10.1080/1331677X.2022.2080733
Do political connections foster or hamper firm environmental investment?
Lihong Song
Likai Zou
Qiang Liang
Abstract
Extant studies of environmental investment determinants have
not distinguished between different types of political connections.
This study tries to close this gap by employing an extensive dataset
based on the four-yearly Chinese Private Enterprises Survey
conducted between 2006 and 2012. The central question in this
paper asks whether different political connections (ascribed vs.
achieved) are fostering or hindering environmental protection
expenditures in private enterprises. The results show that
achieved political connections serve as binds of promoting firm
environmental investment while ascribed political connections act
as buffers, hampering firm environmental expenditures. The moderating
roles of environmental regulation and innovation capability
demonstrate heterogeneous effects: environmental regulation
stringency strengthens the positive impact of achieved political
connections only. In contrast, innovation capability enhances the
negative impact of ascribed political connections.
Keywords
Environmental investment; political connection; environmental regulation; innovation capability; private enterprises; transitional economy
Hrčak ID:
304217
URI
Publication date:
31.3.2023.
Visits: 211 *