Director's network location and corporate environmental investment in the carbon neutrality age
Director's network location and corporate environmental investment in the carbon neutrality age
Although carbon neutrality is a global aim, the potential drivers and influence mechanisms of corporate governance communities are unclear. This study examines the impact of director's network location on corporate environmental investment (CEI) and explores potential channels for CEI performance changes. Using a sample of 495 listed firms in China from 2015 to 2019, we construct a director-based network using contacts of independent company directors. Results indicate that director's network location has positive economic impacts on CEI performance and that financing constraints are an important mechanism of director's networks affecting CEI. Director's networks positively affect corporate performance by improving CEI. Results are robust to endogeneity concerns and contribute to the CEI literature by showing a positive effect between director's network and CEI, as well as between director's network and enterprise value. This paves the way for policymakers, managers, and investors to understand the influence of director's network on CEI performance.
Wang, Liukai
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Su, Yun
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Huang, Heshu
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Gong, Yu
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Wang, Weiqin
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16 November 2022
Wang, Liukai
1ea2c3e6-95e6-4912-952a-54a53e2da059
Su, Yun
0160fe2a-b71a-4e7d-9567-e338a0d89715
Huang, Heshu
c99925c4-4fa3-48d7-8e35-ed56a9c407c9
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
Wang, Weiqin
2b5653d2-064d-40d9-8630-ddd310e34af3
Wang, Liukai, Su, Yun, Huang, Heshu, Gong, Yu and Wang, Weiqin
(2022)
Director's network location and corporate environmental investment in the carbon neutrality age.
Business Strategy and the Environment.
(doi:10.1002/bse.3294).
Abstract
Although carbon neutrality is a global aim, the potential drivers and influence mechanisms of corporate governance communities are unclear. This study examines the impact of director's network location on corporate environmental investment (CEI) and explores potential channels for CEI performance changes. Using a sample of 495 listed firms in China from 2015 to 2019, we construct a director-based network using contacts of independent company directors. Results indicate that director's network location has positive economic impacts on CEI performance and that financing constraints are an important mechanism of director's networks affecting CEI. Director's networks positively affect corporate performance by improving CEI. Results are robust to endogeneity concerns and contribute to the CEI literature by showing a positive effect between director's network and CEI, as well as between director's network and enterprise value. This paves the way for policymakers, managers, and investors to understand the influence of director's network on CEI performance.
Text
Bus Strat Env - 2022 - Wang - Director s network location and corporate environmental investment in the carbon neutrality
- Version of Record
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Accepted/In Press date: 19 October 2022
Published date: 16 November 2022
Identifiers
Local EPrints ID: 475530
URI: http://eprints.soton.ac.uk/id/eprint/475530
ISSN: 0964-4733
PURE UUID: eaa8dea8-87f8-4000-87e1-2e64e24f3fde
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Date deposited: 21 Mar 2023 17:37
Last modified: 17 Mar 2024 03:45
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Author:
Liukai Wang
Author:
Yun Su
Author:
Heshu Huang
Author:
Weiqin Wang
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