Influence of government divestiture, secondary privatization, and regional development on corporate environmental performance in China.

Summary: When the government decides to sell its shares in a company—a process known as privatization—you might wonder what happens to that company's green habits. A new study looked at publicly traded Chinese companies from 2012 to 2023 to find out. It discovered that when the government steps away, companies often do a worse job of protecting the environment.

However, there is a bright spot! If the company is located in a highly developed area, this negative effect is much smaller. People and groups in these richer areas expect more eco-friendly action, so companies try harder to keep up their green standards. This research tells leaders that they need to carefully watch out for the environment when they let private owners take over state-run businesses.