Leviathan Inc. and Corporate Environmental Engagement
72 Pages Posted: 1 May 2017 Last revised: 30 Mar 2018
Date Written: March 2018
In a 2010 report, The Economist called the resurgence of state-owned mega-enterprises, especially those in emerging economies, “Leviathan Inc.”, and criticized their poor governance and efficiency. We show that state-owned enterprises engage more in environmental issues and are more responsive to salient environmental events and change in government’s political orientation. The effect is more pronounced in energy firms from emerging economies and countries with higher energy risks, and with direct shareholdings by domestic government rather than sovereign wealth funds. Firm performance does not suffer from such engagement, suggesting that “Leviathan Inc.” may be better positioned at dealing with environmental externalities.
Keywords: state ownership, environmental engagement, sustainability, ownership structure
JEL Classification: G32, H11, H41, Q56
Suggested Citation: Suggested Citation