Government procurement and corporate environmental policies

Chen, J., Jing, C., Keasey, K. and Xu, B. ORCID: https://orcid.org/0000-0003-3512-5834 (2025) Government procurement and corporate environmental policies. Journal of Financial and Quantitative Analysis. ISSN 1756-6916 doi: 10.1017/S0022109025102111

Abstract/Summary

We investigate how the government, as a customer, affects a supplier’s environmental policies. We find that government contractors have significantly lower levels of toxic pollution. Exploring the mechanisms, we show that government contractors reduce pollution by strengthening internal environmental governance and increasing investments in pollution abatement. Further analysis rules out alternative explanations related to reduced economic activities and financial constraints. Overall, our results highlight the important role of the government in disciplining corporate environmental misbehavior.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/123767
Identification Number/DOI	10.1017/S0022109025102111
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Cambridge University Press
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