Research On The Influence Of Corporate Governance And Public Governance On Environmental Strategy Choice Of Listed Companies

In recent years,environmental problems have become the biggest threats facing humanity,mainly involving smog,greenhouse effect,acid rain,land desertification,ozone layer destruction,and global environmental crises.These problems seriously threaten the survival and development of mankind,and have become an important issue of common concern to people all over the world.The search for solutions to environmental pollution has become an important task in building a community with a shared future for mankind.As the main body of environmental pollution and governance,the environmental strategic choice of enterprises plays a vital role in the success of environmental protection in various countries.Academia has conducted a lot of research on the environmental performance of enterprises,mainly focusing on the impact of government environmental regulations and corporate governance on environmental performance,that is,studying the environmental behavior of enterprises from the perspective of public governance or corporate governance.However,enterprises are an important part of the operation of social activities,and corporate environmental behaviors are simultaneously affected by both internal and external factors.First,the company’s environmental behavior is fundamentally determined by the company’s environmental strategy,which is the program of the company’s environmental work.Second,corporate governance is directly related to the company’s resource allocation methods and efficiency,and the company’s senior management’s environmental awareness and incentive mechanism and supervision mechanisms directly affect the company’s environmental strategic choices.Finally,as the programmatic document for the operation of the entire society,government rules also depend on the government’s administrative efficiency.Therefore,there is still a lack of an overall framework in the existing research,which combines internal corporate governance and external public governance to study corporate environmental strategic issues.This lack of work will inevitably make us insufficiently aware of corporate environmental behavior.Therefore,on the basis of previous studies,this article analyzes the impact of its individual and joint effects on the corporate environmental strategic choice from the perspective of corporate internal corporate governance and external public governance.The research samples of this article are mainly derived from the environmental and social responsibility reports and annual reports of listed companies in China.The relevant content of 3844 environmental and social responsibility reports in the manufacturing industry from 2006 to 2018 is extracted through content analysis.Firstly,define,classify and measure the corporate environmental strategy according to the connotation of the strategy.Secondly,carry out theoretical and empirical deductions on the relationship between corporate governance and public governance and corporate environmental strategy.Thirdly,select the corresponding adjustment variables to test the company whether the mechanism between governance,public governance and corporate environmental strategy is established.Finally,different regression methods and explanatory variables are selected for robustness testing and supplementary analysis.The main content of this research is divided into the following three parts:First,define,classify,and measure environmental strategies according to the connotation of strategies.The strategy is to form the company’s long-term goals and objectives,limit the company’s main activities and specific methods of allocating resources.It can be seen from the connotation of strategy that strategy is an attitude of an enterprise towards long-term planning.It needs to limit the content of its main activities and allocate resources accordingly.Therefore,this article combines predecessors’ research and the connotation of strategy to classify corporate environmental strategies from the perspective of corporate attitudes towards environmental behavior,the content perspective of corporate approach to environmental behavior,and the resource perspective of corporate approach to environmental behavior.From the perspective of the company’s attitude towards environmental behavior,and according to the company’s attitude towards environmental information disclosure and whether the company has financial violations,it can be divided into negative environmental strategies and positive environmental strategies.According to the company’s content perspective on environmental behaviors,it focuses on making plans and paying attention to implementation,parallel implementation of the plan or implementation of the plan do not pay attention to the division into planned environmental strategy,implementation environmental strategy,consistent environmental strategy and stochastic environmental strategy.According to the enterprise’s resource perspective on environmental behavior,it is divided into source input environmental strategy and process investment-oriented environmental strategy and end-of-investment environmental strategy.Second,conduct theoretical derivation and empirical analysis of the relationship between corporate governance,public governance and environmental strategy.The theories involved in this research are principal-agent theory,resource-based theory,and stakeholder co-governance theory.These three types of theories are explained to provide a theoretical basis for the following hypotheses.By selecting senior management’s shareholding as the proxy variable of the incentive factor,the combination of chairman and general manager as the proxy variable of the company’s internal supervision factors,and government efficiency as the proxy variable of government supervision.The main assumptions of this article include the following: 1)Companies with a high proportion of executives tend to choose active environmental strategies,implementation environmental strategies,and source investment environmental strategies.2)The combination of chairman and general manager Lower enterprises tend to choose passive environmental strategies,planned environmental strategies and end-investment environmental strategies.3)Regional enterprises with high government efficiency tend to choose active environmental strategies,implementation-type environmental strategies and end-investment environmental strategies.4)Under the combined effect of executive shareholding and government efficiency,companies tend to choose active environmental strategies,implementation-oriented environmental strategies,and source-input environmental strategies.5)Under the combined effects of the two roles of chairman and general manager and government efficiency,companies tend to choose Active environmental strategy,implementation environmental strategy and end investment environmental strategy.Third,select the moderating variable to further verify the influence mechanism of the main effect.Based on the three influence mechanisms of main effects,this paper selects corporate profitability,senior management’s age,and corporate institutional distance as moderator variables,and proposes corresponding hypotheses: 1)The stronger the corporate profitability,the higher the share of senior management.The more companies tend to choose positive environmental strategies,implementation-oriented environmental strategies,and source-input environmental strategies.2)The older the senior management,the more the chairman and general manager have the same position,the more inclined to choose positive environmental strategies and implementation-oriented environmental strategies.Environmental strategies and endinput environmental strategies.3)The closer the institutional distance,the higher the efficiency of the government,and the more companies tend to choose active environmental strategies,implementation-type environmental strategies and endinput environmental strategies.The main contributions of this article are divided into the following four points:First,a systematic environmental strategy classification and measurement theoretical framework has been constructed to provide different methods for corporate environmental strategy measurement.In previous studies,scholars have classified environmental strategies from different dimensions,which lacked systemicity.Therefore,this article first starts from the strategic connotation and combines the existing literature on the classification methods of corporate environmental strategies to form a relatively complete environmental strategy classification framework.In the past,scholars mainly designed different questionnaires to measure environmental strategies,which made it difficult to compare studies horizontally,and the reproducibility of studies was not high.In this study,the main purpose is to extract the contents of the environmental and social responsibility reports of listed companies and combine the financial data of listed companies to construct a systematic environmental strategy measurement framework based on the connotation of the strategy.In this way,the measurement of environmental strategic indicators can be more objective,and the indicators can be checked against each other.Second,it studies the relationship between corporate governance and corporate environmental strategy selection from the two dimensions of incentives and supervision,and expands the research content of corporate governance and corporate environmental strategy.Existing research mainly analyzes the relationship between executive incentives and corporate environmental performance,but corporate governance mainly includes incentives and supervision.At present,few studies combine these two aspects to study corporate environmental behavior from a strategic perspective..Starting from the two dimensions of incentive level and regulatory level,this paper separately studies the impact of incentives and supervision on different environmental strategies of enterprises.Through the research of this article,it can be judged whether there is a difference in the role of corporate incentives and regulatory measures in the choice of corporate environmental strategy.This not only enriches the research on corporate governance and environmental aspects theoretically,but also has great practical significance for corporate management.Third,it studies the relationship between public governance and corporate environmental strategy selection from the perspective of government administrative efficiency,which enriches the research content of government behavior and corporate environmental strategy.Existing research mainly analyzes the impact of government environmental regulations on corporate environmental performance and environmental strategies.As the highest programmatic document for corporate environmental development,government environmental rules have a high impact.However,in addition to formulating rules and policies,the government’s own administrative efficiency determines whether its rules and policies can be effectively implemented.Therefore,on the basis of previous studies,this article analyzes the impact of government administrative efficiency on corporate environmental strategic choices.Through the research of this article,the predecessors have enriched the influence of the government on the corporate environmental strategy selection,and supplemented the research content of public governance and environment.Fourth,starting from the company’s internal governance and external governance,a complete framework is constructed,which extends the research content of antecedent variables of corporate environmental strategy.Regarding the research on corporate environmental behavior,the current research on corporate environmental behavior is mainly from the level of executive incentives and environmental regulation.As an important part of the social and economic operation of enterprises,their behavior choices are jointly influenced by the internal governance and external governance of the enterprise.But few studies have combined internal and external governance to consider the impact on corporate environmental strategies.Therefore,through the research of this article,an overall framework combining internal governance and external governance is constructed,which supplements the research content of corporate environmental strategy.To sum up,through the research of this article,firstly,it supplements the content of corporate governance,public governance and environmental strategy in theory;secondly,it also provides enlightenment to management practice in reality,including business owners and the government.In future research,the role played by nongovernmental organizations in public governance can be further added to the model for analysis to enrich the content of this research.