TY - JOUR
T1 - Peer effects on corporate environmental protection
T2 - Competition, information cascades or career concerns?
AU - Liang, Quanxi
AU - Li, Qiumei
AU - Lu, Meiting
AU - Shan, Yaowen
AU - Wang, Peipei
PY - 2024/4
Y1 - 2024/4
N2 - This study examines peer influence, and its underlying motives, on environmental protection performance. We find consistent evidence of peer effects on environmental protection performance among Chinese firms. When the average environmental protection score of industry peers increases by one point, the focal firm imitates and increases its future environmental score by 5.7%. We find that such peer effects are largely due to information cascades and managerial career concerns. Additional tests show that peer effects are more pronounced among non-state-owned enterprises and firms in low-polluting areas with a high pressure of regional economic growth.
AB - This study examines peer influence, and its underlying motives, on environmental protection performance. We find consistent evidence of peer effects on environmental protection performance among Chinese firms. When the average environmental protection score of industry peers increases by one point, the focal firm imitates and increases its future environmental score by 5.7%. We find that such peer effects are largely due to information cascades and managerial career concerns. Additional tests show that peer effects are more pronounced among non-state-owned enterprises and firms in low-polluting areas with a high pressure of regional economic growth.
KW - Career concerns
KW - Environmental protection performance
KW - Information cascades
KW - Peer effects
UR - http://www.scopus.com/inward/record.url?scp=85186983151&partnerID=8YFLogxK
U2 - 10.1016/j.pacfin.2024.102313
DO - 10.1016/j.pacfin.2024.102313
M3 - Article
AN - SCOPUS:85186983151
SN - 0927-538X
VL - 84
SP - 1
EP - 26
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
M1 - 102313
ER -