Lawyers in the Boardroom and Firms’ Environmental Performance

Xianda LIU, Jiafu AN, Tinghua DUAN, Wenxuan HOU*, Ruoran ZHAO

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

1 Citation (Scopus)

Abstract

This paper studies whether and how firms’ legal environment influences their environmental performance. After presenting new evidence on the positive link between civil law origin and firms’ environmental outcomes, we propose and show that directors with legal study or work experience exert a stronger impact on firms’ environmental outcomes in civil law than in common law countries. The results suggest the compliance effect of legal directors is stronger for firms located in civil law countries than the litigation risk effect for firms in common law countries. Using a quasi-natural experiment of the Paris Agreement, we find evidence consistent with our interpretation.
Original languageEnglish
Article number101874
JournalJournal of International Financial Markets, Institutions and Money
Volume89
Early online date18 Oct 2023
DOIs
Publication statusPublished - Dec 2023

Bibliographical note

Publisher Copyright:
© 2023

Keywords

  • Environmental performance
  • Firm emission
  • Legal directors
  • Legal origin
  • Paris agreement

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