"Signal Transmission"or"Resource Effect":A Study on the Influence of Political Connection of Highly Polluting Enterprises on Environmental Protection Investment
Environmental governance and green transformation of highly polluting enterprises are the top priori-ty of low-carbon economic development.Taking the highly polluting enterprises listed on the Shanghai and Shen-zhen A-share markets from 2010 to 2021 as a sample,this paper empirically tests the impact and mechanism of po-.litical connections of highly polluting enterprises on environmental protection investment using panel regression models and mediating and moderating effects.The results show that the political connection of heavily polluting en-terprises can inhibit the environmental protection investment of enterprises,and the restraining effect is more from the signal transmission effect of political connection than the resource effect in respect of the influencing mecha-nism,which is reflected in the fact that the politically connected enterprises will lower the level of social responsibil-ity fulfillment to reduce the environmental protection investment.However,the implementation of the new environ-mental protection law releases strong environmental regulation signals and alleviates the restraining effect,while the resource effect of political connection does not play a significant role in the intermediary effect of financing con-straints and the market-oriented adjustment effect.
Heavy polluting enterprisesPolitical connectionEnvironmental protection investmentSignal transmissionResource effect
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