Accepted_BSE_30_July_2018.pdf (641.65 kB)
Environmental policy, environmental performance, and financial distress in China: do top management team characteristics matter?
journal contribution
posted on 2023-06-10, 03:29 authored by Yasir Shahab, Collins G Ntim, Ye Chengang, Farid Ullah, Samuel FosuSamuel FosuThis 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' (TMTs') 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 twofold. First, our results indicate that increased environmental performance that is driven by good environmental policies tends 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.
History
Publication status
- Published
File Version
- Accepted version
Journal
Business Strategy and the EnvironmentISSN
0964-4733Publisher
WileyExternal DOI
Issue
8Volume
27Page range
1635-1652Department affiliated with
- Accounting and Finance Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2022-05-11First Open Access (FOA) Date
2022-05-11First Compliant Deposit (FCD) Date
2022-05-11Usage metrics
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