Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness

Drawing from the circular economy, which prioritizes resource optimization, waste reduction, and operational efficiency, the objective of this study is to investigate the influence of environmental regulations on Green Financial Management (GFM), the role of GFM as a mediator between environmental r...

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Main Authors: Suijun Chen, Pankaewta Lakkanawanit, Muttanachai Suttipun, He Xue
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2023.2209973
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author Suijun Chen
Pankaewta Lakkanawanit
Muttanachai Suttipun
He Xue
author_facet Suijun Chen
Pankaewta Lakkanawanit
Muttanachai Suttipun
He Xue
author_sort Suijun Chen
collection DOAJ
description Drawing from the circular economy, which prioritizes resource optimization, waste reduction, and operational efficiency, the objective of this study is to investigate the influence of environmental regulations on Green Financial Management (GFM), the role of GFM as a mediator between environmental regulations and corporate performance, and the moderating effect of Top Management’s Environmental Awareness (TMEA). Using the questionnaires from 684 Chinese green enterprises, the structural equation analysis is used to verify the results. The empirical findings indicate that environmental regulation has a positive effect on GFM and that GFM acts as a mediator between environmental regulation and corporate performance. However, it is found that TMEA does not have a significant moderating effect between environmental regulation and GFM. This study contributes to the broader discussion around resource efficiency and sustainability in the circular economy by emphasizing the importance of companies complying with environmental regulations and adopting GFM strategies to improve performance. Policymakers can consider the role of GFM in promoting sustainable business development, and prioritize the development and implementation of strong environmental regulations.
format Article
id doaj-art-45d6462b9e894fc89b32d947c4d1fec9
institution DOAJ
issn 2331-1975
language English
publishDate 2023-12-01
publisher Taylor & Francis Group
record_format Article
series Cogent Business & Management
spelling doaj-art-45d6462b9e894fc89b32d947c4d1fec92025-08-20T03:08:24ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2209973Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awarenessSuijun Chen0Pankaewta Lakkanawanit1Muttanachai Suttipun2He Xue3College of Graduate Studies, Walailak University, Nakhon Si Thammarat 80160, ThailandLogistics and Business Analytics Center of Excellence (LOGBIZ), Walailak University, Nakhon Si Thammarat 80160, ThailandFaculty of Management Sciences, Prince of Songkla University, Songkhla 90112, ThailandCollege of Management, Wuzhou University, Guangxi 543002, ChinaDrawing from the circular economy, which prioritizes resource optimization, waste reduction, and operational efficiency, the objective of this study is to investigate the influence of environmental regulations on Green Financial Management (GFM), the role of GFM as a mediator between environmental regulations and corporate performance, and the moderating effect of Top Management’s Environmental Awareness (TMEA). Using the questionnaires from 684 Chinese green enterprises, the structural equation analysis is used to verify the results. The empirical findings indicate that environmental regulation has a positive effect on GFM and that GFM acts as a mediator between environmental regulation and corporate performance. However, it is found that TMEA does not have a significant moderating effect between environmental regulation and GFM. This study contributes to the broader discussion around resource efficiency and sustainability in the circular economy by emphasizing the importance of companies complying with environmental regulations and adopting GFM strategies to improve performance. Policymakers can consider the role of GFM in promoting sustainable business development, and prioritize the development and implementation of strong environmental regulations.https://www.tandfonline.com/doi/10.1080/23311975.2023.2209973Environmental regulationgreen financial managementtop management’s environmental awarenesscorporate performance
spellingShingle Suijun Chen
Pankaewta Lakkanawanit
Muttanachai Suttipun
He Xue
Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness
Cogent Business & Management
Environmental regulation
green financial management
top management’s environmental awareness
corporate performance
title Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness
title_full Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness
title_fullStr Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness
title_full_unstemmed Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness
title_short Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness
title_sort environmental regulation and corporate performance the effects of green financial management and top management s environmental awareness
topic Environmental regulation
green financial management
top management’s environmental awareness
corporate performance
url https://www.tandfonline.com/doi/10.1080/23311975.2023.2209973
work_keys_str_mv AT suijunchen environmentalregulationandcorporateperformancetheeffectsofgreenfinancialmanagementandtopmanagementsenvironmentalawareness
AT pankaewtalakkanawanit environmentalregulationandcorporateperformancetheeffectsofgreenfinancialmanagementandtopmanagementsenvironmentalawareness
AT muttanachaisuttipun environmentalregulationandcorporateperformancetheeffectsofgreenfinancialmanagementandtopmanagementsenvironmentalawareness
AT hexue environmentalregulationandcorporateperformancetheeffectsofgreenfinancialmanagementandtopmanagementsenvironmentalawareness