A Win-Win Outcome between Corporate Environmental Performance and Corporate Value: From the Perspective of Stakeholders

This paper combines determinants of corporate environment performance (CEP) and the effect of CEP on corporate value together, namely how to motivate firms to conduct environmental protection from the perspective of enhancing firm value. Using a sample of 204 observations of listed corporations in Chinese pollution-intensive industries over the period of 2013-2014, we observed that: (1) compared to investment in a single stakeholder, combinations of multidimensional stakeholders are more likely to affect CEP, and the path is not unique; (2) employees have a positive role, but investors, the community, suppliers, and customers have negative roles; (3) among three patterns for high CEP, both high investment in employees and low investment in the community, suppliers and customers will not detract from firm value, i.e., a win-win outcome; (4) among three patterns for low CEP, one will enhance firm value; and (5) the investor should be seen as an important breakthrough in corporate environmental protection. Such conclusions have stronger promotional value for other emerging countries where corporate social and environmental responsibility is still in the initial stage and the traditional corporate government mode still has a leading position.