Scholarlink

<p>We study whether firms appoint directors with political connections to the board when the firm faces environmental concerns. We find firms with environmental concerns are more likely to appoint politically connected directors in the subsequent years. Our results are robust using two-stage least squares (2SLS). In supplemental analysis, we compare the likelihood of appointing a political director with environmental expertise versus a political director without environmental expertise and find evidence that firms incrementally value directors with both political connections and environmental expertise to respond to environmental concerns. Our findings are consistent with institutional theory, as firms seem to value political directors with environmental expertise to maintain legitimacy and ensure compliance with environmental regulations and norms.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Navigating environmental concerns: the appointment of political directors

  • 期刊论文

  • 发表日期：

    2025年6月14日

查看全文
  • Justin Deng,
  • Jun Guo,
  • Jung Yeun Kim,
  • Sungsoo Kim

摘要

We study whether firms appoint directors with political connections to the board when the firm faces environmental concerns. We find firms with environmental concerns are more likely to appoint politically connected directors in the subsequent years. Our results are robust using two-stage least squares (2SLS). In supplemental analysis, we compare the likelihood of appointing a political director with environmental expertise versus a political director without environmental expertise and find evidence that firms incrementally value directors with both political connections and environmental expertise to respond to environmental concerns. Our findings are consistent with institutional theory, as firms seem to value political directors with environmental expertise to maintain legitimacy and ensure compliance with environmental regulations and norms.