Business strategy and firm efforts on environmental protection: Evidence from China
研究企业战略如何影响环保行为，发现探索型企业比防御型企业采取更多环保行动，尤其在财务约束高、盈余管理高、国企、重污染行业及环境规制严格地区更明显。
Abstract Although business strategy plays a fundamental role in firm operations, whether and how business strategy affects firms' environmental protection behaviors remain unclear. On the basis of a typical emerging market, we show that firms following prospector strategies take more environmental protection actions than do those following defender strategies. Our findings are robust to endogeneity checks and alternative measures of business strategy. We further find that prospectors engage in more environmental activities than do defenders when the degree of financial constraint or earning management is high. Our results are particularly pronounced in state‐owned enterprises, heavy‐polluting industries, and firms located in regions with strict environmental regulations. Overall, this study provides clear policy implications for regulators concerned with environmental protection.