Does Entrepreneurs’ Military Experience Promote Corporate Environmental Investment? Evidence from Chinese Private Firms
Abstract
:1. Introduction
2. Literature Review and Hypothesis Development
2.1. Theoretical Foundation
2.2. Military Experience and Corporate Environmental Investment
2.3. The Moderating Effect of Wartime Atmosphere
2.4. The Moderating Effect of Public Environmental Concern
3. Research Methods and Data
3.1. Data Source
3.2. Model and Measurements
3.2.1. Dependent Variable: Corporate Environmental Investment
3.2.2. Independent Variable: Military Experience
3.2.3. Wartime Atmosphere
3.2.4. Public Environmental Concern
3.2.5. Control Variables
4. Empirical Results
4.1. Summary Statistics
4.2. Correlation Analysis
4.3. Regression Results
4.4. Robustness Checks
4.4.1. Alternative Measures of Environmental Investment
4.4.2. Endogeneity Correction
5. Discussion
5.1. Contributions
5.2. Practical Implications
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Appendix A
Appendix B
Denv | Sol | Size | Year | Lev | Profit | Tax | Edu | Male | Pay | Own | Age | Inv | Pol | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Denv | 1 | |||||||||||||
Sol | 0.054 *** | 1 | ||||||||||||
Size | 0.330 *** | 0.0260 | 1 | |||||||||||
Year | 0.203 *** | 0.043 ** | 0.407 *** | 1 | ||||||||||
Lev | 0.125 *** | −0.00100 | 0.405 *** | 0.140 *** | 1 | |||||||||
Profit | 0.067 *** | 0.0140 | −0.164 *** | −0.0100 | −0.197 *** | 1 | ||||||||
Tax | 0.00300 | 0.00700 | −0.299 *** | −0.060 *** | −0.134 *** | 0.379 *** | 1 | |||||||
Edu | 0.0290 | −0.00900 | 0.220 *** | 0.044 ** | 0.085 *** | −0.0230 | −0.0230 | 1 | ||||||
Male | −0.096 *** | −0.057 *** | −0.172 *** | −0.113 *** | −0.089 *** | −0.0130 | 0.0180 | 0 | 1 | |||||
Pay | 0.192 *** | 0.0160 | 0.432 *** | 0.255 *** | 0.059 *** | 0.186 *** | −0.00100 | 0.158 *** | −0.109 *** | 1 | ||||
Own | −0.054 *** | −0.045 ** | −0.108 *** | 0.047 ** | −0.110 *** | 0.060 *** | 0.00300 | −0.116 *** | −0.00800 | 0.051 ** | 1 | |||
Age | 0.104 *** | 0.042 ** | 0.236 *** | 0.358 *** | 0.138 *** | −0.063 *** | −0.036 * | −0.160 *** | −0.069 *** | 0.096 *** | −0.0100 | 1 | ||
Inv | 0.200 *** | −0.0200 | 0.368 *** | 0.138 *** | 0.193 *** | −0.0150 | −0.0270 | 0.159 *** | −0.080 *** | 0.217 *** | −0.056 *** | 0.072 *** | 1 | |
Pol | 0.245 *** | 0.037 * | 0.436 *** | 0.300 *** | 0.141 *** | 0.00700 | −0.055 *** | 0.134 *** | −0.109 *** | 0.275 *** | 0.0270 | 0.158 *** | 0.224 *** | 1 |
Env | Sol | Size | Year | Lev | Profit | Tax | Edu | Male | Pay | Own | Age | Inv | Pol | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Env | 1 | |||||||||||||
Sol | 0.052 ** | 1 | ||||||||||||
Size | 0.418 *** | 0.0260 | 1 | |||||||||||
Year | 0.171 *** | 0.043 ** | 0.407 *** | 1 | ||||||||||
Lev | 0.194 *** | −0.00100 | 0.405 *** | 0.140 *** | 1 | |||||||||
Profit | 0.00700 | 0.0140 | −0.164 *** | −0.0100 | −0.197 *** | 1 | ||||||||
Tax | −0.00700 | 0.00700 | −0.299 *** | −0.060 *** | −0.134 *** | 0.379 *** | 1 | |||||||
Edu | 0.083 *** | −0.00900 | 0.220 *** | 0.044 ** | 0.085 *** | −0.0230 | −0.0230 | 1 | ||||||
Male | −0.105 *** | −0.057 *** | −0.172 *** | −0.113 *** | −0.089 *** | −0.0130 | 0.0180 | 0 | 1 | |||||
Pay | 0.237 *** | 0.0160 | 0.432 *** | 0.255 *** | 0.059 *** | 0.186 *** | −0.00100 | 0.158 *** | −0.109 *** | 1 | ||||
Own | −0.089 *** | −0.045 ** | −0.108 *** | 0.047 ** | −0.110 *** | 0.060 *** | 0.00300 | −0.116 *** | −0.00800 | 0.051 ** | 1 | |||
Age | 0.095 *** | 0.042 ** | 0.236 *** | 0.358 *** | 0.138 *** | −0.063 *** | −0.036 * | −0.160 *** | −0.069 *** | 0.096 *** | −0.0100 | 1 | ||
Inv | 0.326 *** | −0.0200 | 0.368 *** | 0.138 *** | 0.193 *** | −0.0150 | −0.0270 | 0.159 *** | −0.080 *** | 0.217 *** | −0.056 *** | 0.072 *** | 1 | |
Pol | 0.255 *** | 0.037 * | 0.436 *** | 0.300 *** | 0.141 *** | 0.00700 | −0.055 *** | 0.134 *** | −0.109 *** | 0.275 *** | 0.0270 | 0.158 *** | 0.224 *** | 1 |
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Panel A: Descriptive Statistics | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Variable | N | Mean | Median | S.D. | Min | Max | ||||
Env | 2438 | 0.855 | 0 | 1.466 | 0 | 5.994 | ||||
Denv | 2438 | 0.350 | 0 | 0.477 | 0 | 1 | ||||
Sol | 2438 | 0.0430 | 0 | 0.204 | 0 | 1 | ||||
Size | 2438 | 6.855 | 7.010 | 2.365 | 1.194 | 11.66 | ||||
Year | 2438 | 9.252 | 9 | 5.275 | 1 | 22 | ||||
Lev | 2438 | 0.212 | 0 | 0.263 | 0 | 0.870 | ||||
Profit | 2438 | 0.0900 | 0.0460 | 0.168 | −0.531 | 0.693 | ||||
Tax | 2438 | 0.0910 | 0.0530 | 0.136 | 0 | 0.900 | ||||
Edu | 2438 | 3.884 | 4 | 1.093 | 1 | 6 | ||||
Male | 2438 | 1.154 | 1 | 0.361 | 1 | 2 | ||||
Pay | 2438 | 2.528 | 2.398 | 0.923 | 0.693 | 5.303 | ||||
Own | 2438 | 0.768 | 0.962 | 0.293 | 0 | 1 | ||||
Age | 2438 | 46.10 | 46 | 8.697 | 25 | 69 | ||||
Inv | 2438 | 0.0300 | 0 | 0.0940 | 0 | 0.624 | ||||
Pol | 2438 | 0.414 | 0 | 0.493 | 0 | 1 | ||||
Panel B: Univariate Tests | ||||||||||
Military Experience = 0 | Military Experience = 1 | Difference | ||||||||
N | Mean | S.D. | N | Mean | S.D. | |||||
Denv | 106 | 0.472 | 0.502 | 2332 | 0.345 | 0.475 | −0.127 *** | |||
Env | 106 | 1.211 | 1.626 | 2332 | 0.838 | 1.457 | −0.373 ** |
Variable | VIF | 1/VIF |
---|---|---|
Sol | 1.02 | 0.980210 |
Size | 2.56 | 0.390030 |
Year | 1.41 | 0.706716 |
Lev | 1.29 | 0.776051 |
Profit | 1.31 | 0.763006 |
Tax | 1.32 | 0.756182 |
Edu | 1.19 | 0.841570 |
Male | 1.07 | 0.931029 |
Pay | 1.44 | 0.694870 |
Own | 1.07 | 0.934790 |
Age | 1.25 | 0.798415 |
Inv | 1.20 | 0.834949 |
Pol | 1.34 | 0.747946 |
Variables | (1) | (2) | (3) | (4) |
---|---|---|---|---|
Denv | Denv | Env | Env | |
Sol | 0.347 *** | 0.294 ** | 0.323 ** | 0.279 ** |
(2.61) | (2.13) | (2.36) | (2.23) | |
Size | 0.169 *** | 0.177 *** | ||
(8.07) | (10.34) | |||
Year | 0.022 *** | −0.001 | ||
(3.48) | (−0.15) | |||
Lev | −0.128 | 0.062 | ||
(−1.04) | (0.57) | |||
Profit | 0.883 *** | 0.082 | ||
(3.94) | (0.47) | |||
Tax | 0.640 ** | 0.959 *** | ||
(2.52) | (4.48) | |||
Edu | −0.042 | −0.012 | ||
(−1.47) | (−0.46) | |||
Male | −0.056 | −0.037 | ||
(−0.63) | (−0.51) | |||
Pay | 0.031 | 0.079 ** | ||
(0.85) | (2.40) | |||
Own | −0.123 | −0.200 ** | ||
(−1.20) | (−2.25) | |||
Age | −0.004 | −0.004 | ||
(−0.95) | (−1.32) | |||
Inv | 0.784 ** | 2.727 *** | ||
(2.38) | (9.30) | |||
Pol | 0.241 *** | 0.173 *** | ||
(3.73) | (2.92) | |||
Constant | 0.018 | −1.404 *** | 0.841 *** | −0.381 |
(0.18) | (−4.78) | (29.60) | (−1.64) | |
Region | Yes | Yes | Yes | Yes |
Industy | Yes | Yes | Yes | Yes |
Observations | 2434 | 2434 | 2438 | 2438 |
Pseudo R2 (R2) | 0.118 | 0.201 | 0.134 | 0.287 |
Variables | Wartime Atmosphere | Public Environmental Concern | ||||||
---|---|---|---|---|---|---|---|---|
Experienced | Unexperienced | High | Low | |||||
(1) | (2) | (3) | (4) | (1) | (2) | (3) | (4) | |
Env | Denv | Env | Denv | Env | Denv | Env | Denv | |
Sol | 0.505 ** | 0.754 *** | 0.199 | 0.143 | 0.115 | −0.070 | 0.432 *** | 0.633 *** |
(2.40) | (3.02) | (1.26) | (0.80) | (0.60) | (−0.34) | (2.62) | (3.31) | |
Controls | 0.136 *** | 0.107 ** | 0.187 *** | 0.200 *** | 0.214 *** | 0.196 *** | 0.136 *** | 0.123 *** |
(3.71) | (2.48) | (9.57) | (8.11) | (7.93) | (6.20) | (5.95) | (4.20) | |
Year | 0.004 | 0.019 | −0.001 | 0.027 *** | 0.001 | 0.025 *** | −0.004 | 0.018 * |
(0.34) | (1.52) | (−0.13) | (3.52) | (0.14) | (2.87) | (−0.51) | (1.85) | |
Lev | 0.012 | 0.003 | 0.094 | −0.145 | 0.094 | −0.083 | 0.058 | −0.209 |
(0.05) | (0.01) | (0.73) | (−1.00) | (0.60) | (−0.49) | (0.37) | (−1.10) | |
Profit | −0.078 | 0.083 | 0.122 | 1.168 *** | 0.279 | 0.828 ** | 0.010 | 1.029 *** |
(−0.20) | (0.18) | (0.63) | (4.44) | (0.95) | (2.37) | (0.05) | (3.37) | |
Tax | 0.991 ** | 1.034 * | 0.943 *** | 0.552 * | 1.097 *** | 0.616 * | 0.585 * | 0.538 |
(2.05) | (1.88) | (3.91) | (1.90) | (3.61) | (1.81) | (1.88) | (1.31) | |
Edu | 0.072 | 0.079 | −0.036 | −0.084 ** | −0.018 | −0.012 | 0.003 | −0.060 |
(1.38) | (1.35) | (−1.22) | (−2.52) | (−0.49) | (−0.30) | (0.09) | (−1.41) | |
Male | 0.081 | −0.107 | −0.074 | −0.050 | 0.050 | 0.014 | −0.086 | −0.110 |
(0.48) | (−0.50) | (−0.92) | (−0.52) | (0.45) | (0.11) | (−0.89) | (−0.87) | |
Pay | 0.127 * | 0.126 * | 0.065 * | −0.004 | 0.111 ** | 0.037 | 0.022 | 0.013 |
(1.95) | (1.75) | (1.70) | (−0.08) | (2.39) | (0.74) | (0.46) | (0.22) | |
Own | −0.330 * | 0.057 | −0.159 | −0.185 | −0.243 * | −0.115 | −0.195 | −0.215 |
(−1.75) | (0.26) | (−1.56) | (−1.57) | (−1.79) | (−0.77) | (−1.63) | (−1.45) | |
Age | 0.011 | 0.012 | −0.004 | −0.010 * | −0.002 | −0.002 | −0.006 | −0.004 |
(0.96) | (0.95) | (−0.85) | (−1.65) | (−0.43) | (−0.48) | (−1.25) | (−0.73) | |
Inv | 2.848 *** | 0.553 | 2.625 *** | 0.727 * | 3.198 *** | 0.741 | 2.339 *** | 1.023 ** |
(4.68) | (0.79) | (7.77) | (1.93) | (7.35) | (1.52) | (5.87) | (2.19) | |
Pol | 0.175 | 0.353 *** | 0.193 *** | 0.230 *** | 0.039 | 0.135 | 0.348 *** | 0.403 *** |
(1.51) | (2.73) | (2.74) | (2.98) | (0.48) | (1.57) | (3.94) | (3.96) | |
Constant | −1.454 * | −2.591 *** | −0.323 | −1.141 *** | −0.873 ** | −1.722 *** | 0.057 | −1.100 *** |
(−1.95) | (−2.93) | (−1.13) | (−3.14) | (−2.41) | (−3.92) | (0.18) | (−2.64) | |
Region | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Industry | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Observations | 588 | 574 | 1849 | 1846 | 1259 | 1255 | 1178 | 1175 |
Pseudo R2 (R2) | 0.281 | 0.1853 | 0.298 | 0.2188 | 0.294 | 0.1915 | 0.293 | 0.2295 |
Variables | (1) | (2) | (3) | (4) |
---|---|---|---|---|
OIEnv | OIDenv | NPEnv | NPDEnv | |
Sol | 0.036 ** | 0.294 ** | 0.061 ** | 0.293 ** |
(2.38) | (2.13) | (2.10) | (1.98) | |
Size | 0.014 *** | 0.169 *** | 0.021 *** | 0.174 *** |
(6.99) | (8.07) | (5.09) | (7.53) | |
Year | 0.000 | 0.022 *** | 0.000 | 0.019 *** |
(0.12) | (3.48) | (0.15) | (2.86) | |
Lev | 0.007 | −0.128 | 0.033 | −0.198 |
(0.51) | (−1.04) | (1.30) | (−1.52) | |
Profit | 0.040 * | 0.883 *** | −0.105 ** | 0.990 *** |
(1.92) | (3.94) | (−2.17) | (3.67) | |
Tax | 0.149 *** | 0.640 ** | 0.225 *** | 0.663 ** |
(5.74) | (2.52) | (4.42) | (2.50) | |
Edu | −0.001 | −0.042 | −0.003 | −0.044 |
(−0.41) | (−1.47) | (−0.61) | (−1.47) | |
Male | −0.006 | −0.056 | −0.009 | −0.052 |
(−0.74) | (−0.63) | (−0.56) | (−0.56) | |
Pay | 0.010 *** | 0.031 | 0.002 | 0.029 |
(2.60) | (0.85) | (0.24) | (0.76) | |
Own | −0.021 ** | −0.123 | −0.051 ** | −0.156 |
(−1.98) | (−1.20) | (−2.48) | (−1.46) | |
Age | −0.000 | −0.004 | −0.001 | −0.005 |
(−1.12) | (−0.95) | (−1.58) | (−1.20) | |
Inv | 0.230 *** | 0.784 ** | 0.261 *** | 0.689 ** |
(6.48) | (2.38) | (3.99) | (2.04) | |
Pol | 0.022 *** | 0.241 *** | 0.042 *** | 0.259 *** |
(3.02) | (3.73) | (3.09) | (3.86) | |
Constant | −0.008 | −1.404 *** | 0.100 * | −1.318 *** |
(−0.29) | (−4.78) | (1.84) | (−4.25) | |
Region | Yes | Yes | Yes | Yes |
Industry | Yes | Yes | Yes | Yes |
Observations | 2438 | 2434 | 2211 | 2207 |
Pseudo R2 (R2) | 0.234 | 0.201 | 0.183 | 0.195 |
Panel A: Balance Test | ||||||
---|---|---|---|---|---|---|
PSM | Variable | Treated | Control | (%) Bias | t | p > |t| |
unmatched | Size | 7.1407 | 6.8739 | 11.7 | 1.14 | 0.256 |
Year | 10.321 | 9.2196 | 20.2 | 2.10 | 0.036 | |
Lev | 0.21031 | 0.21441 | −1.6 | −0.16 | 0.876 | |
Profit | 0.10098 | 0.08985 | 5.7 | 0.67 | 0.504 | |
Tax | 0.09569 | 0.09039 | 3.9 | 0.40 | 0.692 | |
Edu | 3.8396 | 3.8718 | −3.0 | −0.30 | 0.767 | |
Male | 1.0566 | 1.1542 | −32.1 | −2.75 | 0.006 | |
Pay | 2.5979 | 2.5282 | 7.3 | 0.76 | 0.448 | |
Own | 0.7052 | 0.7697 | −20.6 | −2.21 | 0.027 | |
Age | 47.83 | 46.062 | 19.8 | 2.05 | 0.041 | |
Inv | 0.0209 | 0.03055 | −11.9 | −1.02 | 0.307 | |
Pol | 0.5 | 0.4137 | 17.3 | 1.76 | 0.078 | |
matched | Size | 7.1407 | 6.9786 | 7.1 | 0.51 | 0.611 |
Year | 10.321 | 10.443 | −2.3 | −0.17 | 0.868 | |
Lev | 0.21031 | 0.2024 | 3.0 | 0.23 | 0.820 | |
Profit | 0.10098 | 0.09693 | 2.1 | 0.15 | 0.882 | |
Tax | 0.09569 | 0.10074 | −3.7 | −0.24 | 0.808 | |
Edu | 3.8396 | 3.8208 | 1.7 | 0.13 | 0.898 | |
Male | 1.0566 | 1.066 | −3.1 | −0.28 | 0.776 | |
Pay | 2.5979 | 2.5209 | 8.0 | 0.56 | 0.576 | |
Own | 0.70524 | 48.67 | −9.4 | −0.35 | 0.723 | |
Age | 47.83 | 0.02176 | −1.1 | −0.68 | 0.497 | |
Inv | 0.0209 | 0.0218 | −11.9 | −0.09 | 0.927 | |
Pol | 0.5 | 0.5 | 0.0 | 0.00 | l.000 | |
Panel B: Differences Test between Groups | ||||||
Variable | Treated | N | Control | N | Difference | t-Test |
Env | 1.211 | 106 | 0.787 | 106 | 0.424 *** | 2.44 |
Denv | 0.472 | 106 | 0.302 | 106 | 0.066 ** | 2.04 |
Panel C: Regression Results of PSM | ||||||
Variable | Env | Denv | ||||
Sol | 0.602 *** (2.62) | 0.400 ** (2.2) | ||||
Size | 0.281 *** (3.3) | 0.249 *** (3.99) | ||||
Year | 0.015 (0.65) | −0.018 (−0.89) | ||||
Lev | −0.296 (−0.56) | −0.302 (−0.73) | ||||
Profit | 0.723 (0.91) | −0.807 (−1.33) | ||||
Tax | 1.39 (1.26) | 1.776 ** (2.3) | ||||
Edu | −0.015 (−0.13) | −0.035 (−0.38) | ||||
Male | −1.142 * (−1.66) | −0.305 (−0.77) | ||||
Pay | 0.082 (0.58) | 0.069 (0.6) | ||||
Own | −0.163 (−0.42) | −0.397 (−1.30) | ||||
Age | −0.011 (−0.71) | −0.003 (−0.28) | ||||
Inv | 1.175 (0.63) | 1.935 (1.33) | ||||
Pol | 0.141 (0.55) | −0.009 (−0.04) | ||||
_cons | −1.311 (−0.92) | −0.109 (−0.12) | ||||
Industry | Yes | Yes | ||||
Region | Yes | Yes | ||||
N | 212 | 212 | ||||
Adj.R2 | 0.331 | 0.287 |
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Hong, C.; Yan, Y.; Zhang, X. Does Entrepreneurs’ Military Experience Promote Corporate Environmental Investment? Evidence from Chinese Private Firms. Int. J. Environ. Res. Public Health 2022, 19, 2104. https://doi.org/10.3390/ijerph19042104
Hong C, Yan Y, Zhang X. Does Entrepreneurs’ Military Experience Promote Corporate Environmental Investment? Evidence from Chinese Private Firms. International Journal of Environmental Research and Public Health. 2022; 19(4):2104. https://doi.org/10.3390/ijerph19042104
Chicago/Turabian StyleHong, Conghua, Youliang Yan, and Xinxin Zhang. 2022. "Does Entrepreneurs’ Military Experience Promote Corporate Environmental Investment? Evidence from Chinese Private Firms" International Journal of Environmental Research and Public Health 19, no. 4: 2104. https://doi.org/10.3390/ijerph19042104