Regulatory Ties and Corporate Compliance Strategies

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

1 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)580-605
Journal / PublicationPublic Performance and Management Review
Volume42
Issue number3
Online published10 Oct 2018
Publication statusPublished - 2019

Abstract

By integrating the environmental regulation literature and managerial ties theory, this research explores how regulatory ties and firm visibility shape formalism and self-determination, two distinct corporate coping strategies for complying with environmental regulatory demands. Based on survey data collected in China, our empirical results show a U-shaped relationship between firms’ regulatory ties and their strict adherence to formal rules (formalism), and an inverted U-shaped relationship between regulatory ties and firm discrepancy in complying with regulations (self-determination). Further, the inverted U-shaped relationship is stronger among firms with less organizational and environmental visibility. Additional analysis further indicates that these relationships are particularly evident in privately owned enterprises. Our study may contribute to the public performance literature by furthering our understanding of regulatory ties as a double-edged sword in corporate compliance.

Research Area(s)

  • corporate coping strategy, environmental regulation, regulatory ties

Citation Format(s)

Regulatory Ties and Corporate Compliance Strategies. / Liu, Ning; Wing-Hung Lo, Carlos; Zhan, Xueyong.

In: Public Performance and Management Review, Vol. 42, No. 3, 2019, p. 580-605.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review