Environmental Regulatory Independence

The impact of environmental regulatory independence on corporate environmental performance in China.

Environmental Regulatory Independence and Corporate Environmental Performance

with Xin Chang, Jianfu Shen and Eddie C.M. Hui

Expected to be submitted to Strategic Management Journal

The 2016 environmental verticalization reform in China transferred management authority of local Environmental Protection Bureaus from local governments to provincial EPBs. Local SOEs’ corporate environmental performance significantly improved as local EPBs gained more regulatory independence. Although local SOEs increased abatement investments, the reform did not negatively affect their revenue, profitability, or valuation.