Local Corruption And Corporate Environmental Protection Investment

As an emerging economy,Chinese discretion over economic resources,administrative resources are in the hands of the government.Therefore,the government can intervene in the operation and management activities of enterprises.However,Chinese current legal environment is poor and institutional influence is weak.As a result,in order to avoid the red tape of the bureaucratic system and obtain resources controlled by the government,enterprises have the motivation to collude with officials and breed political corruption.Previous studies have shown that political corruption has a significant impact on the speed of economic development at the macro level,the efficiency of resource allocation,the level of legal symbols,and the corporate value,financial performance,and information quality at the micro level.Effect.The importance of environmental pollution is self-evident as a problem that needs to be faced by all human beings at present.Therefore,it is of great significance to study the effect of political corruption on corporate environmental protection investment.Based on the data of listed companies in heavy pollution industry from 2008 to2020,this thesis empirically examines the impact of regional corruption degree on enterprises’ environmental investment.The study found that the level of corruption in a region inhibits corporate environmental investment.At the same time,the enhancement of media supervision and the weakening of financing constraints can effectively weaken the inhibition effect of regional corruption on enterprises’ environmental investment.Further research shows that the degree of regional corruption inhibits corporate environmental investment by weakening the intensity of environmental regulation and increasing the hospitality travel cost path.Moreover,based on the enterprise level,the inhibition effect of regional corruption degree on enterprise environmental investment is more significant in state-owned enterprises and enterprises with low market competition degree.At the regional level,the inhibition effect of regional corruption on enterprise environmental investment is more significant in regions with low level of economic development and low degree of marketization.Based on the perspective of political corruption including both government and enterprises,this thesis studies the influence of political corruption on enterprise environmental protection investment.The research conclusion supplements the relevant literature on the influencing factors of enterprise environmental protection investment and expands the research on the economic consequences of regional corruption degree.It also provides empirical basis for relevant regulatory departments and policy making departments to formulate and implement environmental protection policies.In order to achieve the goal of sustainable discovery,the central government needs to strengthen supervision over the implementation of environmental policies by local governments.Meanwhile,the influence of political corruption on enterprises’ environmental protection behaviors can be avoided by giving play to the supervision role of media and developing green financial credit.