The effect of political turnover on corporate ESG performance: Evidence from China.
PLoS One
; 18(7): e0288789, 2023.
Article
en En
| MEDLINE
| ID: mdl-37486926
ABSTRACT
This paper aims to investigate the effect of political turnover on corporate ESG performance in China. By analyzing data from Chinese A-share-listed companies between 2010 and 2020, we have discovered that changes in the municipal party committee secretary or the mayor of the prefecture-level city where a firm is located have a detrimental effect on corporate ESG performance. Compared with the change of the party committee, the change of mayor has a more pronounced negative impact on ESG performance. The reason behind this negative effect is primarily attributed to policy uncertainty, which leads to a decrease in governmental subsidies and an increase in ineffective under-investment by companies, consequently resulting in decreased corporate ESG performance. Furthermore, we have also observed that the adverse influence of political turnover on corporate ESG performance is relatively mitigated in SOEs, politically connected firms, and tertiary industries. These findings contribute to a deeper understanding of the relationship between political uncertainty and corporate behavior, particularly in emerging markets.
Texto completo:
1
Colección:
01-internacional
Base de datos:
MEDLINE
Asunto principal:
Política
/
Pueblo Asiatico
/
Desarrollo Sostenible
/
Industrias
Aspecto:
Determinantes_sociais_saude
/
Equity_inequality
Límite:
Humans
País/Región como asunto:
Asia
Idioma:
En
Revista:
PLoS One
Asunto de la revista:
CIENCIA
/
MEDICINA
Año:
2023
Tipo del documento:
Article
País de afiliación:
China