Proactive Corporate Environmental Responsibility and Financial Performance: Evidence from Chinese Energy Enterprises

With increasing concerns about environmental issues and the advancement of China's "going global" strategy, a new issue-proactive corporate social responsibility has emerged. Proactive corporate environmental responsibility refers to business actions that go beyond regulatory requirements for supporting sustainable environmental development. This study examines the role of proactive corporate environmental responsibility on corporate financial performance in the Chinese energy industry by the multi-variables regression analysis of panel data. Using data of 264 firm-year observations from 2009-2014 in the energy industry, the results showed that Proactive corporate environmental responsibility has a positive effect on corporate financial performance passing the endogeneity test. The results also demonstrate that private ownership has stronger promotion on the relationship between proactive corporate environmental responsibility and corporate financial performance. This study helps to increase the body of knowledge about proactive corporate environmental responsibility of the emerging economy, provides insights into the corporate environmental responsibility practice, and government environmental regulation and policy.