Environmental policy, environmental performance and financial distress in China: do top management team characteristics matter?
Environmental policy, environmental performance and financial distress in China: do top management team characteristics matter?
This study investigates the effect of environmental performance that is driven by good environmental policies, regulations and management on firm’s financial distress, and consequently, ascertains the extent to which top management teams’ (TMT) characteristics can moderate the environmental performance–financial distress nexus in China using 749 firms over the 2009-2014 period (i.e., generating over 3,000 individual observations). Our findings are two-fold. First, our results indicate that increased environmental performance that is driven by good environmental policies tend to strategically reduce the extent of firm financial distress. Second, this nexus is moderated by TMT gender diversity, foreign exposure and political connection. We interpret our findings within neo-institutional, upper echelons and risk management theoretical perspectives. The findings are robust to the use of alternative measures of financial distress, estimation techniques and endogeneity problems.
Environmental policy, environmental management and performance, business strategy and financial distress, TMT characteristics, risk management perspective, upper echelons perspective, China
1635-1652
Shahab, Yasir
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Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Chengang, Ye
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Ullah, Farid
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Fosu, Samuel
20135acd-447a-44ab-b5c7-949477e89121
Shahab, Yasir
b47bf26f-bd24-48c8-beaf-5c6849bf10c2
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Chengang, Ye
9d8429f2-868e-412b-b60c-b62c26cd876d
Ullah, Farid
aeee2696-d071-4526-a3ae-3c6e8054dd09
Fosu, Samuel
20135acd-447a-44ab-b5c7-949477e89121
Shahab, Yasir, Ntim, Collins, Chengang, Ye, Ullah, Farid and Fosu, Samuel
(2018)
Environmental policy, environmental performance and financial distress in China: do top management team characteristics matter?
Business Strategy and the Environment, 27, .
(doi:10.1002/bse.2229).
Abstract
This study investigates the effect of environmental performance that is driven by good environmental policies, regulations and management on firm’s financial distress, and consequently, ascertains the extent to which top management teams’ (TMT) characteristics can moderate the environmental performance–financial distress nexus in China using 749 firms over the 2009-2014 period (i.e., generating over 3,000 individual observations). Our findings are two-fold. First, our results indicate that increased environmental performance that is driven by good environmental policies tend to strategically reduce the extent of firm financial distress. Second, this nexus is moderated by TMT gender diversity, foreign exposure and political connection. We interpret our findings within neo-institutional, upper echelons and risk management theoretical perspectives. The findings are robust to the use of alternative measures of financial distress, estimation techniques and endogeneity problems.
Text
Accepted BSE 30 July 2018
- Accepted Manuscript
More information
Accepted/In Press date: 30 July 2018
e-pub ahead of print date: 3 September 2018
Keywords:
Environmental policy, environmental management and performance, business strategy and financial distress, TMT characteristics, risk management perspective, upper echelons perspective, China
Identifiers
Local EPrints ID: 422669
URI: http://eprints.soton.ac.uk/id/eprint/422669
ISSN: 0964-4733
PURE UUID: 88c8886f-afa6-47c6-9126-cdf08dc173e8
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Date deposited: 30 Jul 2018 16:30
Last modified: 16 Mar 2024 06:56
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Contributors
Author:
Yasir Shahab
Author:
Ye Chengang
Author:
Farid Ullah
Author:
Samuel Fosu
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