Who Drives Enterprise Environmental Governance: Officials' Tenure Evaluation or “Five-Year Plan” Target Assessment？
- WANG Hongjian, TANG Taijie & SONG Xianzhong
- Jinan University
Based on non-financial enterprises data from 2000 to 2014, we measure the level of corporate environmental governance by environmental investment to estimate the impact of officials' tenure evaluation and “Five-Year Plan” target assessment on corporate environmental governance. The results show that corporate environmental investment presents a significantly periodic trend in the “FiveYear Plan”, while the trend is not significant in officials' tenure. The further test suggests that after the central government incorporated the environmental performance into the performance evaluation system of local government officials, it has become significant in the periodic trend in the impact of officials' tenure on environmental investment. In contrast, the trend has become less prominent in the “Five-Year Plan”, indicating that there exists a substitute relation between the two evaluation systems. The validation mechanism also finds that both environmental subsidies and pollution abatement expenditures present a significantly periodic trend in the “Five-Year Plan”. And officials' tenure plays a regulatory role in the “Five-Year Plan” periodic trend in corporate environmental governance, showing that it is more significant when the time about officials tenure evaluation is earlier than “Five-Year Plan” target assessment. The above results indicate that it is beneficial to improve local environmental governance from the perspective of top institutional design by both strengthening the environmental evaluation.
JEL：F12, G30, G34
- Five-Year Plan, Target Assessment, Officials' Tenure Evaluation, Corporate Environmental Governance