Does a board chairman's political connection affect green investment?-From a sustainable perspective

Abstract

Using a sample consisting of China's listed manufacturing companies which issue A-shares on the Shenzhen and Shanghai stock exchanges from 2008-2014, this study empirically tests the relationship between board chairman's political connections and the amount of energy conservation and emission reduction investment. The results show that the existence of politically-connected board chairmen positively affects green investment. In addition, marketization degrees negatively moderate the relationship between political connection and green investment, which supports an institutional logic perspective. The amount of redundant resources also has the same moderating effect, which is consistent with the resource exchange perspective.