Do Climate Change Regulatory Pressures Increase Corporate Environmental Sustainability Performance? The Moderating Roles of Foreign Market Exposure and Industry Carbon Intensity

Xiaolong Shui*, Minhao Zhang, Yichuan Wang, Palie K Smart

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

8 Citations (Scopus)

Abstract

This study focuses on climate change regulatory pressures at the national/regional level, which can be considered emergent institutions – newly established and subject to change – in contrast to established institutions. We explore their impact on the environmental sustainability performance of multinational enterprises, advancing beyond the extant literature's focus on their binary compliance reactions. Utilizing a sample of Standard & Poor's 1200 firms, our findings indicate that variations in climate change regulatory pressures at the national/regional level can account for differences in environmental sustainability performance at the corporate level. Moreover, this relationship is moderated by two critical firm characteristics: foreign market exposure and industry carbon intensity. Foreign market exposure, particularly in the context of developing countries, can diminish the positive effects of a home country's climate change regulatory pressures, while industry carbon intensity can amplify these effects.
Original languageEnglish
Pages (from-to)223-239
Number of pages17
JournalBritish Journal of Management
Volume36
Issue number1
Early online date14 Jun 2024
DOIs
Publication statusE-pub ahead of print - 14 Jun 2024

Bibliographical note

Publisher Copyright:
© 2024 The Author(s). British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management.

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