Environmental policy, environmental performance, and financial distress in China: Do top management team characteristics matter?

Yasir Shahab; Collins G. Ntim; Ye Chengang; Farid Ullah; Samuel Fosu

doi:10.1002/bse.2229

journal article Open Access Sep 03, 2018

Environmental policy, environmental performance, and financial distress in China: Do top management team characteristics matter?

Yasir Shahab

Collins G. Ntim

Ye Chengang Farid Ullah

Samuel Fosu

Business Strategy and the Environment Vol. 27 No. 8 pp. 1635-1652 · Wiley

View at Publisher Save 10.1002/bse.2229

Abstract

AbstractThis 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.

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Details

Published: Sep 03, 2018
Vol/Issue: 27(8)
Pages: 1635-1652
License: View

Authors

Y

Yasir Shahab

School of Accounting Xijing University Xi'an City Shaanxi Province China

C

Collins G. Ntim

Centre for Research in Accounting, Accountability and Governance (CRAAG), Department of Accounting, Southampton Business School University of Southampton Southampton UK

Y

Ye Chengang

Business School, Centre for International Business Ethics (CIBE) University of International Business and Economics (UIBE) Beijing China

F

Farid Ullah

School of Accounting Xijing University Xi'an City Shaanxi Province China

S

Samuel Fosu

Birmingham Business School University of Birmingham Birmingham UK

Cite This Article

Yasir Shahab, Collins G. Ntim, Ye Chengang, et al. (2018). Environmental policy, environmental performance, and financial distress in China: Do top management team characteristics matter?. Business Strategy and the Environment, 27(8), 1635-1652. https://doi.org/10.1002/bse.2229

Environmental policy, environmental performance, and financial distress in China: Do top management team characteristics matter?

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