Institutional Environment,political Connections And Enterprise Environmental Protection Investment

Environmental problems get much attention recent years.Gradually enterprises have been taking the responsibility of environmental protection investment from government.However,enterprise investment decisions are affected by political connections during economic transition period.Companies with political connections can enjoy financing facilities,tax preference,and other advantages,so can they avoid environmental protection investment as well.Therefore,it’s necessary to put political connections into consideration in environmental protection investment studies.In this paper,the data of environmentally sensitive companies in A-share market between 2008-2015 are researched to figure out the influence of management’s political connections on enterprises’ environmental protection investment and how institutional environment amends the influence.It’s found that companies with stronger political connections make less environmental protection investment,while anti-corruption,marketization can weaken the negative influence.The influence of internationalization on their relationship is not significant.