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Political connection, political promotion and corporate environmental information disclosure in China

Yuxuan Li (School of Management, Harbin Institute of Technology, Harbin, China)
Christina W.Y. Wong (Business Division, The Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China)
Xin Miao (School of Management, Harbin Institute of Technology, Harbin, China)

Chinese Management Studies

ISSN: 1750-614X

Article publication date: 8 March 2021

Issue publication date: 17 January 2022

884

Abstract

Purpose

This study aims to examine how the political career concerns of top executives affect corporate environmental practices.

Design/methodology/approach

Based on rent-seeking theory, this work uses empirical analysis to investigate the impact of top executives’ political connection and political promotion on corporate environmental information disclosure (EID). Data were collected from Chinese listed firms in heavily polluting industries in the Shanghai Stock Market in 2014–2016.

Findings

The results reveal that the highly politically connected top executives are more likely to be promoted in their political positions than their counterparts. However, the firms under the management of these highly politically connected executives show low level of EID. The results suggest that the political motivations of top executives with political connection hinders corporate EID.

Originality/value

This paper extends literature system about the impact of executives' rent-seeking on corporate EID by examining the informal mechanisms in terms of political connection and political promotion. It provides insights for studies of corporate environmental strategies and governmental environmental responsibility.

Keywords

Acknowledgements

The work described in this paper was partially funded by the Chunhui Plan Cooperative Research Project Foundation of Ministry of Education of China (Grant No. HLJ2019002), the Research Grants Council of the Hong Kong Special Administration Region (PolyU 152031/17B) and The Hong Kong Polytechnic University (G-SB2K).

Citation

Li, Y., Wong, C.W.Y. and Miao, X. (2022), "Political connection, political promotion and corporate environmental information disclosure in China", Chinese Management Studies, Vol. 16 No. 1, pp. 78-101. https://doi.org/10.1108/CMS-06-2020-0233

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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