The Impact of River Chief Policy on Corporate Environmental Governance Strategies
Based on the sample of A-share listed companies in the stock market of Shanghai and Shenzhen from 2008 to 2016,this study empirically examines the impact of the River Chief Policy(RCP)on corporate environmental strategies by using staggered differences in differences(DID)method with the natural treatment and control groups formed during the diffusion phase of the policy.The study found that the implementation of the RCP can significantly promote corporates to adopt an"end-treatment"strategy(short-term orientation),but not yet effectively guide corporates to adopt a"source-control"strategy(long-term orientation),this conclusion still holds after a series of tests,and this promotion effect is more obvious for firms in the more economically developed,closer supervision,downstream areas of the river and in areas where provincial policy documents have been issued and where the RCP has been re-produced.Further study found that local governments'increased investment in regional pollution control and enhanced regional environmental supervision are important channels through which the RCP can promote corporates'"end-treatment"strategies.And that public environmental demands can,to a certain extent,correct the short-term orientation of firms'environmental management decisions.
corporate environmental governancethe River Chief Policy"end-treatment"strategy"source-control"strategy
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