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| Research on the Impact of Supplier Environmental Administrative Penalty on Firm Risk |
| ZHOU Zhifang，DAI Yixiang |
| Central South University, Changsha, China |
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Abstract Based on the data of A-share listed firms and the data of environmental administrative penalty provided by pkulaw, this study empirically tests the impact of environmental administrative penalty on firm risk. It shows that supplier environmental administrative penalty is negatively related to firm risk. The negative impact of supplier environmental administrative penalty on firm risk is more significant for the firms with lower environmental performance and stronger external environmental regulation. Further analysis shows that supplier environmental administrative penalty plays a role in reducing financial risks of firms mainly by promoting firms to exhibit more substantive environmental actions. Supplier environmental administrative penalty is positively related to the financial performance of firms, which means that the indirect deterrent effect of supplier environmental administrative penalty can help firms maintain stability and boost growth.
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Received: 27 June 2022
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