POLICY DISCLOSURE AS A PREDICTOR OF ENVIRONMENTAL BEHAVIOUR: EVIDENCE FROM THE CHILEAN RETAIL SECTOR

This study examines the relationship between corporate environmental policy disclosures and firms' environmental investments. Using an endogenous switching probit (ESP) model to mitigate potential endogeneity issues, this study serves two purposes. Initially, it estimates the influence of six organizational characteristics-size, age, manager gender, export orientation, family ownership, and corporate group affiliation-on the probability of firms declaring pro-environmental policies. Subsequently, we test whether such policy disclosures are reliable predictors of environmental investment. We use the retail sector as a case study because of its pivotal role as an intermediary between primary producers, manufacturers, and consumers, thereby holding a uniquely influential position in driving sustainable consumption and production. Our results show a positive relationship between size, manager gender, export orientation, family ownership, and corporate group affiliation. In addition, we find that declaring an environmental policy positively affects the likelihood of businesses investing in environmental protection. This study contributes to the existing literature in three significant ways: it increases the evidence supporting a causal relationship between environmental policy disclosure and environmental investments; it is the first to explore this relationship within the retail industry; and it broadens our understanding of this dynamic in the context of developing countries.

Cite this document

Ibáñez, M. J., VÁSQUEZ LAVÍN, F. A., & PONCE OLIVA, R. D. (2024). POLICY DISCLOSURE AS A PREDICTOR OF ENVIRONMENTAL BEHAVIOUR: EVIDENCE FROM THE CHILEAN RETAIL SECTOR. JOURNAL OF COMPETITIVENESS (Vol. 16, Issue 2). https://doi.org/10.7441/joc.2024.02.05

Subjects

active pro-environmental behaviors

;

corporate environmental policy disclosure

;

environmental intention

;

environmental investment

;

firms' characteristics

;

retail industry