Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

4-2025

Abstract

Grounded in a multi-stakeholder perspective, this study delves into the impact of Corporate Environmental Responsibility (CER) on the performance of firms in the Chinese construction industry. Utilizing a panel dataset of listed companies in the Chinese construction sector from 2008 to 2023, the research conducts empirical analysis by incorporating key stakeholder relationship indicators (customer concentration, government support, and bank loan costs) while controlling for firm characteristics, aiming to assess the effect of corporate environmental information disclosure on financial performance. The findings reveal that CER significantly positively affects financial performance. More crucially, this relationship is partly attributed to the strengthening of stakeholder relationships: to better fulfill their environmental responsibilities, companies can attract a more diverse clientele, secure more government support, and enjoy superior banking relationships, thereby enhancing financial performance. Further analysis indicates that the positive impact of corporate social responsibility on financial performance is more pronounced in firms without environmental management system certification, those with quality management system certification, higher management shareholding, a greater proportion of female executives, smaller executive teams, and higher analyst coverage.

Through empirical research, this paper clearly articulates how leveraging CER to manage multiple stakeholders (customers, government, and banks) can lead to superior performance, not only expanding the theoretical boundaries in the field of environmental responsibility but also significantly advancing stakeholder theory. It further enriches the Resource-Based View (RBV), robustly demonstrating that CER and the resulting stakeholder goodwill are strategic intangible resources that confer competitive advantages to firms. Additionally, it integrates institutional theory, elucidating that alignment with institutional norms and policies can build legitimacy and stakeholder trust, which in turn translates into economic benefits.

The research findings offer actionable insights for managers and decision-makers in the construction industry. We advocate that corporate executives actively implement environmental strategies, not merely as compliance or philanthropic activities but as a vital means to strengthen stakeholder relationships and drive sustainable financial success. Superior CER performance can enhance customer diversity, win government support, and secure favorable financing channels, thereby helping construction companies achieve a win-win situation for economic and environmental goals. Policymakers and regulators can leverage these insights to design policies and incentives (such as green subsidies, stricter disclosure requirements, or preferential loan programs) to encourage active corporate participation in environmental responsibility.

In summary, this study emphasizes that integrating environmental responsibility into core business strategies can create shared value for both companies and stakeholders, robustly supporting the "Carbon Peak and Carbon Neutrality" agenda in the Chinese construction industry.

Keywords

Corporate Environmental Responsibility, Financial Performance, Resource-Based View (RBV) Theory

Degree Awarded

SMU-SJTU Doctor of Business Administration

Discipline

Corporate Finance | Finance and Financial Management

Supervisor(s)

ZHANG, Man

First Page

1

Last Page

138

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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