Community pressure, regulatory pressure and corporate environmental performance

Yankun Zhou, Le Luo, Hongtao Shen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This article analyses the relationship between community pressure, regulatory pressure and corporate environmental performance. Using a sample of 2192 firm-year observations in environmentally sensitive industries for the period 2007–2012, we find that increased community pressure is negatively associated with corporate pollution levels and thus positively associated with corporate environmental performance. Furthermore, intensified community pressure can strengthen regulatory enforcement, but it cannot increase the size of the government subsidy allotted to environmental issues. Finally, regulatory enforcement partly mediates the relationship between community pressure and environmental performance. This study contributes to the understanding of firms’ environmental management and the interaction of community and regulatory pressure.
Original languageEnglish
Pages (from-to)368-392
Number of pages25
JournalAustralian Journal of Management
Volume47
Issue number2
Early online date3 Jul 2021
DOIs
Publication statusPublished - May 2022

Keywords

  • Community pressure
  • corporate environmental performance
  • government environmental subsidy
  • regulatory enforcement

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