Anti-corruption campaign and corporate environmental performance – the influence of ownership, political connections and regional corruption level

Purpose The purpose of this study is to investigate how China’s anti-corruption campaign influences the environmental performance of publicly listed firms, with a focus on how ownership structure, political connections and regional corruption levels shape corporate environmental commitments. Design/methodology/approach Using a multi-period difference-in-differences model, this study analyses the impact of China’s anti-corruption campaign on corporate environmental performance. The campaign is captured through two key events: the 2013–2014 Central Inspection Team Campaigns and the announcement of the Eight-Point Policy. The analysis further explores how the effects vary according to ownership type, political connections and regional corruption levels. Findings The anti-corruption campaign positively influenced the environmental performance of private and non-politically connected firms, particularly those in regions with lower corruption levels. Ownership structures and regional institutional factors significantly shaped firms’ environmental responsiveness to the anti-corruption campaign. Practical implications For private and non-politically connected firms, improving environmental performance, especially in less corrupt regions, can serve as a strategic means of enhancing their reputation. For policymakers, the findings suggest that anti-corruption campaigns can yield additional benefits by promoting greater corporate environmental responsibility, particularly when accompanied by efforts to reduce regional disparities in corruption. Originality/value This study offers a novel perspective by linking anti-corruption efforts to corporate environmental performance through the lens of institutional theory, incorporating political and regional factors. It contributes to the understanding of how governance reforms shape institutional pressures and, in turn, influence corporate sustainability outcomes, thereby extending the literature on the intersection of corruption and environmental behaviour.