Managerial negative interpretation and environmental CSR: Evidence from China

This study takes a managerial cognition perspective and investigates how managerial negative interpretation of the external environment influences firm engagement in environmental CSR. We also explore how ownership structure and market demand uncertainty affect this relationship. The analysis of survey data from 189 firms in China shows that when managers interpret their external environment in a negative light, they first increase their attention to firms' environmental footprint and then decrease their environmental commitment as the assessment of the external environment becomes increasingly negative. Our results also suggest that both state ownership and market uncertainty strengthen this curvilinear relationship.

Automated summary

This study examines the impact of managerial negative interpretation of the external environment on firm engagement in environmental CSR, and investigates how ownership structure and market demand uncertainty influence this relationship.