Abstract

Purpose

The main purpose of this study is to investigate the impact of state capital participation (SCP) on the corporate environmental engagement (CEE) of privately controlled listed firms in China.

Design/methodology/approach

We use a sample of 20,133 firm-year observations from 2009 to 2021. We use three different measures to proxy corporate environmental engagement and two different measures to proxy for state capital participation. We employ a difference-in-difference regression model to estimate the effect of state capital participation on corporate environmental engagement.

Findings

Using a sample of 20,133 firm-year observations from 2009 to 2021, we find that SCP significantly increases corporate expenditure on environmental protection, corporate environmental performance and ESG ratings. Specifically, SCP increases environmental investment capacity and attracts more media coverage, online attention and analysts’ following, which leads to better environmental engagement. Further analyses show that after state shareholders exit privately controlled firms, CEE deteriorates, while private capital injection in state-owned firms has no significant impact on CEE. The positive effect of SCP is stronger in privately controlled firms with local government ownership, a larger number of state shareholders, longer state shareholder holding periods, those without politically connected managers and firms operating in heavy pollution industries. Lastly, we show that minority government ownership reduces firm-level toxic emissions and enhances financial performance.

Research limitations/implications

We enrich the literature on the role of minority state ownership in corporate financial and environmental performance.

Originality/value

We enrich the literature on the role of minority state ownership in corporate financial and environmental performance. In light of the escalating environmental concerns and the growing emphasis on corporate environmental responsibility, this study highlights the beneficial role of minority government ownership in driving environmental performance. By providing resources and attracting external scrutiny, the government, as a minority shareholder, can significantly enhance the environmental engagement of privately controlled firms.

The high fees and interest racked up by bank customers when their accounts go into deficit drop significantly when they are automatically signed up for alerts warning they’re heading into the red, new research has found. In Britain, where the research was done, that adds up to potential annual customer savings of £170-240 million Low-income customers are among those who benefit most.

Five proposals for Clusters of Excellence win funding in the German federal competition / Clusters in the fields of aging research, astrophysics, plant sciences, quantum research and economics will receive funding

The University of Konstanz's Cluster of Excellence "The Politics of Inequality" will continue to receive funding in the context of the German Excellence Strategy. The focus of the second funding phase will be on the question of how it can be prevented that inequality in society develops into a self-reinforcing process.