Does natural environment prefer the right to the left? Governors' partisanship and corporate environmental performance
Byungjun Yu
Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China
Search for more papers by this authorCorresponding Author
Saixing Zeng
Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China
Correspondence
Saixing Zeng, Antai College of Economics and Management, Shanghai Jiao Tong University, No. 1954 Huashan Road, Xuhui District, Shanghai, China 200030.
Email: zengsaixing@sjtu.edu.cn
Search for more papers by this authorXiaohua Meng
School of Politics and Public Administration, Soochow University, Soochow, China
Search for more papers by this authorHanyang Ma
SHU-UTS SILC Business School, Shanghai University, Shanghai, China
Search for more papers by this authorDaxin Sun
Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China
Search for more papers by this authorByungjun Yu
Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China
Search for more papers by this authorCorresponding Author
Saixing Zeng
Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China
Correspondence
Saixing Zeng, Antai College of Economics and Management, Shanghai Jiao Tong University, No. 1954 Huashan Road, Xuhui District, Shanghai, China 200030.
Email: zengsaixing@sjtu.edu.cn
Search for more papers by this authorXiaohua Meng
School of Politics and Public Administration, Soochow University, Soochow, China
Search for more papers by this authorHanyang Ma
SHU-UTS SILC Business School, Shanghai University, Shanghai, China
Search for more papers by this authorDaxin Sun
Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China
Search for more papers by this authorFunding information: National Natural Science Foundation of China, Grant/Award Numbers: 71390525, 71620107004, 71841021, 71573185
Abstract
This study investigates the relationship between governors' partisanship and the corporate environmental performance of firms in South Korea. According to political ideology perspective, governors' partisanship closely influences the policy directions and preferences of the provincial administration. Conservative (red) governors tend to induce and encourage competition among firms by deregulating and offering policy benefits to businesses at the provincial level. In response to increased competition in provinces governed by red governors, firms commit to aggressive environmental initiatives as a strategic differentiation tool, in contrast to their behavior in provinces controlled by liberal (blue) governors. Moreover, we examine a contingent role of the provincial Congress. According to the principle of checks and balances, the positive impact of red governors on a firm's environmental performance is stronger when the provincial Congress is controlled by the liberal (blue) party, with its checks and balances on the red governors. This study extends an institutional theory by exploring institutional setting mechanisms at the provincial level.
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