The quest for green horizons: Can political turnovers drive green investments? New evidence from China
研究中国市级官员更替如何影响企业绿色投资，发现更替后绿色投资增加，企业获得减税和补贴，但整体绩效下降，对能源行业和非国企影响更显著。
This research examines how political turnovers affect corporate green investments. By analyzing manually collected data on municipal government official turnovers in China spanning from 2007 to 2020, we discover a notable increase in corporate green investments following these turnovers, aligning with resource dependency theory. The upswing in green investment results from both corporate initiatives and government influence. Companies that intensify green investments after political turnovers enjoy benefits such as reduced taxes and increased subsidies. The impact of political turnovers on green investments becomes more pronounced amid economic and political uncertainties, particularly under externally appointed officials. This effect is most significant in the energy sector and non-state-owned enterprises (non-SOEs). Despite the observed surge in green investment activity post-turnovers, there is a tendency for these initiatives to subsequently decrease overall firm performance, likely due to the higher costs associated with green investments. This study contributes to our understanding of how political turnovers shape enterprises' sustainability practices and offers valuable insights for businesses navigating the implications of environmentally responsible development.