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

By Yasir Shahab, Collins G. Ntim, Chengang Ye, Farid Ullah, S. Fosu. Business Strategy and the Environment, 2018

227 citations recorded by the source corpus.

This 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.

Subfields: Accounting, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b3d43ef967a98eeb48965166490f31d638c2c62f

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In Accounting

1. Cemil Kuzey
2. Merve Kılıç
3. Ali Uyar
4. Said Elbanna

In Marketing

1. Merve Kılıç
2. Cemil Kuzey
3. Tantawy Moussa
4. Amir Allam
5. Ahmed Bani-Mustafa
6. Said Elbanna

In Strategy and Management

1. Cemil Kuzey
2. Merve Kılıç
3. Ali Uyar
4. Tantawy Moussa
5. Amir Allam
6. Ahmed Bani-Mustafa
7. Said Elbanna

Citations in the corpus

• The link among board characteristics, corporate social responsibility performance, and financial performance: Evidence from the hospitality and tourism industry (2020, background): “From the perspective of upper echelons theory, directors with different knowledge, skills, and expertise may influence a firm’s strategic decisions, and thus improve its financial and non-financial performance (Shahab et al., 2018).”
• Can board environmental orientation improve U.S. firms' carbon performance? The mediating role of carbon strategy (2019, result): “This result also offers empirical support for the findings of de Villiers et al. (2011), Dixon-Fowler et al. (2017), Shahab et al. (2018), and Shaukat et al. (2016), suggesting that, as board orientation towards environmental accountability increases, environmental performance appears to improve,…”