| Title | Operating risk of enterprises when adopting environmental regulation: Evidence from environmental protection law in China |
|---|---|
| ID_Doc | 32625 |
| Authors | Li, JL; Gao, JF; Liao, ML |
| Title | Operating risk of enterprises when adopting environmental regulation: Evidence from environmental protection law in China |
| Year | 2024 |
| Published | |
| Abstract | Addressing the negative externality of pollutant emissions requires environmental regulations. The well -designed environmental regulation can stimulate innovation and reinforce management, which may lead to operating risk decreases in heavily polluting firms. This study evaluates the effect of environmental regulations using the enactment of the Chinese New Environmental Protection Law (NEPL) in 2015 as an exogenous shock. Our difference -in -differences estimation shows that the deterrent of the NEPL reduces the operating risk of heavily polluting firms, and the relationships are robust to different specifications and alternative settings. We also find that the impact of the NEPL is more pronounced in subsamples with higher ex -ante innovation and improved environmental management. Further evidence shows that innovative firms may be better positioned to develop green technologies by patenting to comply with environmental regulations. Moreover, the improved environmental management practices under regulations may attract more analyst attention which help firms build a positive reputation in the market. Such responses to comply with environmental regulations ultimately reduce the operating risk of firms. Overall, our study sheds light on the micro mechanisms behind the NEPL's effect on firms' operating risk, providing implications and references for policymakers and firm managers. |
Similar Articles
| ID | Score | Article |
|---|---|---|
32431
|
Mu, SH; Wang, XL; Mohiuddin, M Impact of Environmental Protection Regulations on Corporate Performance From Porter Hypothesis Perspective: A Study Based on Publicly Listed Manufacturing Firms Data(2022) | |
| 30698
|
Wei, T; Zhu, QL; Liu, WL The Effect of Market-Based Environmental Regulations on Green Technology Innovation-The Regulatory Effect Based on Corporate Social Responsibility(2024)Sustainability, 16, 11 | |
| 30595
|
Du, CY; Zhang, Q; Huang, DK Environmental protection subsidies, green technology innovation and environmental performance: Evidence from China's heavy-polluting listed firms(2023)Plos One, 18, 2 | |
| 34880
|
Pan, AM; Jiang, P; Wang, C; Wang, FF Does environmental regulation promote green technological innovation of companies? Evidence from green patents of Chinese listed companies(2024) | |
| 33005
|
Ma, LH; Ma, SY; Tang, QS; Sun, MM; Yan, HZ; Yuan, XL; Tian, W; Chen, YF Environmental regulation effect on the different technology innovation-based the empirical analysis(2024)Plos One, 19.0, 1 | |
| 8663
|
Wang, YY; Yang, YL; Fu, CY; Fan, ZZ; Zhou, XP Environmental regulation, environmental responsibility, and green technology innovation: Empirical research from China(2021)Plos One, 16.0, 9 | |
| 35254
|
Tao, S; Hai, MD; Fang, ZW; Zheng, DC The role of environmental justice reform in corporate green transformation: Evidence from the establishment of China's environmental courts(2023) | |
| 30553
|
Cai, X; Zhu, BZ; Zhang, HJ; Li, L; Xie, MY Can direct environmental regulation promote green technology innovation in heavily polluting industries? Evidence from Chinese listed companies(2020) | |
| 62457
|
Chen, JY; Chen, ZK How does environmental regulations affect digital green innovation of high-pollution enterprises? Empirical evidence from China(2024)Heliyon, 10, 13 | |
| 30632
|
Wang, M; He, YS; Zhou, JY; Ren, K Evaluating the Effect of Chinese Environmental Regulation on Corporate Sustainability Performance: The Mediating Role of Green Technology Innovation(2022)International Journal Of Environmental Research And Public Health, 19, 11 |