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Erschienen in: Journal of Business Ethics 2/2020

02.08.2018 | Original Paper

CEO Hubris and Firm Pollution: State and Market Contingencies in a Transitional Economy

verfasst von: Lu Zhang, Shenggang Ren, Xiaohong Chen, Dayuan Li, Duanjinyu Yin

Erschienen in: Journal of Business Ethics | Ausgabe 2/2020

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Abstract

This study focuses on CEO hubris and its effect on corporate unethical behaviour—pollution in particular, and in addition examines critical institutional contingencies [state ownership (SO), political connection (PC) and industrial competition] which may moderate this effect. With data from over-polluting listed firms based on the real-time pollution monitoring system in transitional China from 2015 to 2017, we find that CEO hubris is significantly positively related to firm pollution, and that the moderating role of SO is not significant, that PC positively moderates the hubris–pollution relationship and that industrial competition negatively moderates this relationship. These findings contribute to research on the upper echelon theory, institutional theory and the growing literature on emerging economies.

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Fußnoten
1
IPE is a non-profit environmental research organisation registered in 2006 in China which is dedicated to collecting, collating and analysing government and corporate environmental information to build a database of environmental information. Its data have been used by several recent studies, such as Marquis and Bird (2018) and Zhou and Yin (2018).
 
2
All the Pollution Lists can be downloaded from http://​www.​ipe.​org.​cn.
 
3
We tested sampling bias by comparing the observations eliminated and those that remained with regard to their characteristics (firm size, age, ROA and growth rate). The results did not reveal significant differences in firm size (t = − 1.5356, p > 0.10), or age (t = 0.534, p > 0.10), or ROA (t = 0.8467, p > 0.10), or growth rate (t = − 0.5976, p > 0.10). Thus, sampling bias is not a major concern for our study.
 
4
Based on the heavy pollution industry defined by the Ministry of Environmental Protection of China, this paper regards the following industries as the environmentally sensitive industry, including ‘Production and Supply of Electric Power and Heat Power’, ‘Manufacture of Textile’, ‘Manufacture of Non-metallic Mineral Products’, ‘Smelting and Pressing of Ferrous Metals’, ‘Manufacture of Chemical Fibres’, ‘Manufacture of Raw Chemical Materials and Chemical Products’, ‘Manufacture of Liquor, Beverages and Refined Tea, Mining and Washing of Coal, Production and Supply of Gas’, ‘Extraction of Petroleum and Natural Gas’, ‘Processing of Petroleum’, ‘Coking and Processing of Nuclear Fuel’, ‘Manufacture of Medicines, Smelting and Pressing of Non-ferrous Metals’ and ‘Manufacture of Paper and Paper Products’.
 
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Metadaten
Titel
CEO Hubris and Firm Pollution: State and Market Contingencies in a Transitional Economy
verfasst von
Lu Zhang
Shenggang Ren
Xiaohong Chen
Dayuan Li
Duanjinyu Yin
Publikationsdatum
02.08.2018
Verlag
Springer Netherlands
Erschienen in
Journal of Business Ethics / Ausgabe 2/2020
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-018-3987-y

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