• Corporate social responsibility and maturity mismatch of investment and financing: evidence from polluting and non-polluting companies

      Bao, Xiaolan; Luo, Qiaosheng; Li, Sicheng; Crabbe, M. James C.; Yue, Xiao-Guang; Huazhong Agricultural University; Oxford University; University of Bedfordshire; Shanxi University; European University Cyprus; et al. (MDPI, 2020-06-18)
      We investigate the influence of corporate social responsibility (CSR) on the maturity mismatch of investment and financing from the perspective of both polluting and non-polluting companies. The results reveal that CSR performance can aggravate the maturity mismatch of investment and financing; and the e ect can be more serious in the polluting companies. At the same time, we find that CSR makes companies obtain more short-term debt. What is more, polluting companies perform more environmental responsibilities in the form of long-term investments than non-polluting companies. These phenomena exacerbate the maturity mismatch of investment and financing; and this e ect is only significant when polluting companies choose CSR mandatory disclosure. The impact of CSR on the maturity mismatch of investment and financing is more apparent in companies with lower value and at smaller scales. We show that companies should not only perform their CSR to maintain a balanced economic and ecological development, but also pay attention to the aggravation of the maturity mismatch of investment and financing.
    • Fiscal expenditures on science and technology and environmental pollution: evidence from China

      Xiong, Wanfang; Han, Yan; Crabbe, M. James C.; Yue, Xiao-Guang; Huazhong University of Science and Technology; Beijing Institute of Technology; Oxford University; Shanxi University; University of Bedfordshire; European University Cyprus; et al. (MDPI, 2020-11-25)
      Studying the driving factors of environmental pollution is of great importance for China. Previous literature mainly focused on the cause of national aggregate emission changes. However, research about the effect of fiscal expenditures on science and technology (FESTs) on environmental pollution is rare. Considering the large gap among cities in China, it is necessary to investigate whether and how FESTs affect environmental pollution among cities. We adopted three kinds of typical environmental pollutants including sulfur dioxide (SO2) emissions, wastewater emission, and atmospheric particulate matter less than 2.5 micrometers in diameter (PM2.5). Using the data of 260 prefecture-level cities over ten years in China, we found that FESTs play a significantly positive role in reducing sulfur dioxide (SO2) emissions and PM2.5 concentrations, but fail to alleviate wastewater emissions. Specifically, for every 1% increase in FESTs, SO2 emissions were reduced by 5.317% and PM2.5 concentrations were reduced by 5.329%. Furthermore, we found that FESTs reduced environmental pollution by impeding fixed asset investments and by promoting research and development activities (R&D). Moreover, the impacts of FESTs on environmental pollution varied across regions and sub-periods. Our results are robust to a series of additional checks, including alternative econometric specifications, generalized method of moments (GMM) analysis and overcoming potential endogeneity with an instrumental variable. Our findings confirm that government efforts can be effective on pollution control in China. Hence, all governments should pay more attention to FESTs for sustainable development and environmental quality improvements.
    • Models for oil refinery waste management using determined and fuzzy conditions

      Zhumadillayeva, Ainur; Orazbayеv, Batyr; Santeyeva, Saya; Dyussekeyev, Kanagat; Li, Rita Yi Man; Crabbe, M. James C.; Yue, Xiao-Guang; L.N.Gumilyov Eurasian National University, Kazakhstan; Hong Kong Shue Yan University; Rajamangala University of Technology Rattanakosin, Thailand; et al. (MDPI, 2020-06-03)
      This study developed models to solve problems of optimisation, production, and consumption in waste management based on methods of system analysis. Mathematical models of the problems of optimisation and sustainable waste management in deterministic conditions and in a fuzzy environment were formulated. The income from production was maximised considering environmental standards that apply to the field of macroeconomics and microeconomics. The proposed approach used MANAGER software to formalise and solve the problem of revenue optimisation with production waste management to optimise the production of oil products with waste management at a specific technological facility of the Atyrau oil refinery in Kazakhstan. Based on the combined application of the principles of maximin and Pareto optimality, a formulation of the problem of production optimisation with waste management was obtained and a heuristic algorithm for solving the formulated fuzzy optimisation problem with waste management was developed.
    • Valuation impacts of environmental protection taxes and regulatory costs in heavy-polluting industries

      Tu, Wen-Jun; Yue, Xiao-Guang; Liu, Wei; Crabbe, M. James C.; Ningbo University; European University Cyprus; Porto Polytechnic; Qingdao University; Oxford University; University of Bedfordshire; et al. (MDPI, 2020-03-20)
      In 2016, the issue of the Environmental Protection Tax Law indicated the enhancement of environmental protection in China. This study examines the market reaction to firms in heavy-polluting industries, and the effects of external legal institutional quality and internal environmental disclosure on firm value around the passage of Environmental Protection Tax Law. Using an event study approach coupled with ordinary least square regressions, the researchers find a significantly negative market reaction to firms in heavy-polluting industries, but this negative reaction varies depending on the expected increase in future regulatory costs. Specifically, the above negative reaction is stronger when the firm reveals that itself or its subsidiary belongs to heavy-polluting industry, however it would be mitigated when a firm is in a region with better quality of legal institutions or discloses environmental improvement activities. Overall, the results are consistent with the market perceiving that the environmental protection tax law enacted would increase regulatory costs for firms in heavy-polluting industries, and also show the higher-quality regional legal institutions and more efforts on environmental protection could relieve the market’s pessimism caused by uncertainty.