ORIGINAL RESEARCH
Can Political Connections Buffer Firm Pollution?
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1
School of Business, Hunan First Normal University, Changsha, China
2
School of Business, Central South University, Changsha, China
Submission date: 2023-10-17
Final revision date: 2024-01-18
Acceptance date: 2024-02-05
Online publication date: 2024-06-14
Publication date: 2024-07-12
Corresponding author
Zhaohua Xiao
School of Business, Central South University, Changsha, China
Pol. J. Environ. Stud. 2024;33(5):5953-5968
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ABSTRACT
Firm pollution is a top concern for both the public and the government. Previous studies on firm
pollution mainly focus on formal environmental regulations, but rarely explore informal mechanisms
such as political connections, a significant informal means for government intervention. The research
explores how political connections affect firm pollution, and tests the moderating effects of market
competition, state ownership and environmental regulation on this relationship from the perspective
of institutional logics. Using empirical data of the most polluting publicly listed enterprises in China,
the research demonstrated that politically connected firms participate in pollution remarkably less
probably compared to non-connected firms. Moreover, market competition and state ownership
significantly strengthen the focal relationship, while the moderating effect of environmental regulation
is insignificant. The study provides novel insights into political connections research, institutional logics
perspective and corporate unethical behavior.