The Confined Intention: The Reverse Gender Gap in Corporate Environmental Governance in China

Abstract

Former literature finds that women managers play unique roles in environmental governance in OECD countries. However, little evidence was found in developing countries. This study employs a sample of 4150 Chinese private firms to empirically investigate on the gender gaps in corporate environmental performance in China. Based on the Tobit approach, our findings challenge the former literature that female entrepreneurs outperform their male counterparts in environmental governance. Further analysis through Mediating Model provides robust evidences that due to bank discrimination, female entrepreneurs often have limited access to bank finance, which confines their capabilities to invest in environmental projects. Our work sheds new lights and provides significant policy implications on the pro-environmental behaviors of female entrepreneurs that, despite of higher level of environmental awareness, female entrepreneurs should get support for their pro-environmental behaviors in the case of gender discrimination.

Keywords: Bank discrimination, Environmental Investments, Mediation Effects

JEL Classification: D12, M31, C25