The Influence of Corporate Governance and Operating Characteristics on Corporate Environmental Investment: Evidence from China

Abstract

This study mainly explores the relationship between company governance, company operation characteristics, management connection and corporate environmental investment. Based on the theory of stakeholders and principal-agent, it expounds the factors affecting the environmental behavior of companies, and empirically tests the relationship of the involved variables. This study takes the non-financial listed companies of Shanghai Stock Exchange from 2009 to 2011 as a sample, and conducts empirical research on corporate governance, business operation characteristics, management connection and corporate environmental protection investment. The results show that under the same circumstances, if the CEO is also the chairman of the board of directors, it will lead to opportunistic situation of the controlling shareholder, and the degree of willingness to invest in environmental preservation is low, which is negatively related to environmental protection investment. The more redundant resources or the higher the production efficiency exist, the higher the willingness of enterprises to invest in environmental protection will be stimulated.