Normative institutional pressures and corporate green development: evidence from a quantile regression approach

ABSTRACT

This study explores the often-overlooked role of environmental non-governmental organizations (ENGOs) as catalysts for sustainable practices; it unravels the impact of normative institutional pressures (NIPs) on corporate green investment (CGI). By employing the innovative panel quantile regression (PQR) methodology, this research goes beyond conventional approaches to shed light on the non-monotonic association between NIPs and corporate green investment (CGI) among Chinese listed companies (2009 − 2019). Research findings contribute to the literature on institutional forces and corporate environmental sustainability practices. Meanwhile, policymakers may consider developing frameworks that encourage partnerships, knowledge-sharing, and joint initiatives between the corporate sector and ENGOs.

KEYWORDS:

• Normative pressures
• green development
• green investment
• panel quantile

JEL CLASSIFICATION:

• Q56
• L31

Disclosure statement

No potential conflict of interest was reported by the author(s).