Gene

Financial system

Chromatography

Robustness (evolution)

Accounting

Economics

Biochemistry

Business

Corporate governance

Emerging markets

Politics

Share price

Political science

Monetary economics

Stock exchange

Financial economics

Chemistry

Sample (material)

Finance

Investment (military)

Shareholder

Finance research letters

This paper examines the effect of share-pledging of controlling shareholder on corporate environmental investment. Using a sample of Chinese listed companies over the period 2010 – 2019, we find evidence that there is a negative relationship between share-pledging and corporate environmental investment. The above conclusion is still credible after a series of robustness tests. Further, we identify that the relationship is more pronounced in firms with more serious tunneling by controlling shareholder and the risk of share price collapse. Overall, the paper enriches the literature on corporate environmental governance effects of ownership structure and the research on economic consequences of share-pledging, which may be of interest to regulators in developing countries who are concerned with the long-term performance of corporate environmental governance.

Share pledging and corporate environmental investment