Do state subsidies increase corporate environmental spending?

Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/89063

Title:	Do state subsidies increase corporate environmental spending?
Authors:	Wang, Y Zhang, Y
Issue Date:	Nov-2020
Source:	International review of financial analysis, Nov. 2020, v. 72, 101592, p. 1-11
Abstract:	This study investigates the impact of state subsidies on corporate environmental spending of Chinese listed firms between 2011 and 2018, using a hand-collected data from corporate annual and environmental responsibility reports. We find a positive relationship between state subsidies and corporate environment spending, indicating firms receiving government subsidies are more likely to behave more environmentally responsible. In addition, the positive relationships are more pronounced among the non-state-owned enterprises (non-SOEs) and the firms experiencing financial constraints. It is because, non-SOEs are more likely to lose government support comparing to their SOE peers, thus making more efforts to address corporate pollution. Moreover, firms subject to financial difficulties tend to build an environmental responsible image and to contribute more in environment protection.
Keywords:	Environmental spending Financial constraints State subsidies State-owned enterprises
Publisher:	Elsevier
Journal:	International review of financial analysis
EISSN:	1057-5219
DOI:	10.1016/j.irfa.2020.101592
Appears in Collections:	Journal/Magazine Article

Status	embargoed access
Embargo End Date	2022-11-30

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