Is corporate environmental responsibility more valuable in the transitory period? The moderating effect of ownership type

This study examines the effect of corporate environmental responsibility (CER) engagement on firm value by emphasizing the moderating role of ownership type. The data from Chinese A-listed firms from 2006 to 2019 are divided into a period of steady institutional background (2006-2015) and a transitory period of environmental reforms (2016-2019) to capture the differences in legal circumstances. First, we find that the impact of CER on firm value changed significantly from negative to positive over the two periods. Second, ownership type plays a moderating role in influencing the effect of CER on firm value. Third, given the environmental reforms, the CER effectiveness for state-owned enterprises affiliated with the central government increased the most, while that for private enterprises increased the least.