Effect of Regional Cultural Diversity in Senior Executives on Environmental Protection Investment

Abstract

With the increase in the seriousness of environmental issues and investors’ increasing concern for corporate environmental performance, more and more scholars are paying attention to the impact of executive diversification on corporate investment decisions. This study empirically examines the impact of regional cultural diversity in executive teams on corporate environmental investment and its moderating effect on different industries and regions, using companies listed in China from 2009 to 2019 as research samples, from the perspective of informal cultural systems. The research results indicate that: regional cultural diversity in executive teams can significantly promote corporate environmental investment; regional cultural diversity in executives is more conducive to increasing environmental investment in competitive industries, while the promotion effect of environmental protection investment in monopolistic industries is not significant; and diversity in regional culture in top management teams is more conducive to the promotion of environmental investment by coastal enterprises, while the promotion of environmental investment by non-coastal enterprises is not significant.