Environmental Management Under Subnational Institutional Constraints

Journal of Business Ethics 134 (4):631-648 (2016)

Abstract
This study uses the institutional perspective to examine the interaction effects between the subnational institutional context and firm-level parameters on corporate environmental behaviors, based on a unique cross-sectional data set of private firms compiled from three different sources in China. Our results suggest that both enforcement stringency of environmental regulations at the provincial-level and private firms’ foreign ownership negatively affect compensation fees, which are levies charged for firms’ emissions. Enforcement stringency also moderates the firm-level relationship between foreign ownership and compensation fees, but such a cross-level moderating effect holds only for private firms with non-HMT investments.
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DOI 10.1007/s10551-014-2388-0
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