Corporate environmental, social, and governance (ESG) performance is expected to positively affect financial performance because it helps firms gain sociopolitical legitimacy from receiving positive stakeholder awareness and gaining key resources. However, the research on the relationship between corporate ESG performance and financial performance has yielded mixed results. This paper explores the impact of the country governance environment on the ESG–financial performance link. We propose that the positive ESG–financial performance relationship is stronger for firms in countries with better governance. Empirical analyses using a large panel dataset covering 11 years and 58 countries support our arguments. We found that countries with more effective governance in political stability, regulatory quality, and control of corruption strengthen the positive ESG–financial performance relationship. The implications of our findings are significant for firms that face different governance environments and develop sustainable business strategies.

Centralized drug procurement is a common practice worldwide to relieve the healthcare burden and promote high-quality development in the pharmaceutical industry. However, scholars have not yet reached an agreement on whether centralized procurement can facilitate the innovation activities of pharmaceutical firms. China’s centralized volume-based procurement (CVBP) implemented in 2018 provides an ideal quasi-natural experiment to evaluate the effect of centralized procurement on the R&D investment of the firms. Drawing data from listed manufacturing firms in China’s A-share market (2015–2020), the results from a difference-in-differences analysis with different model specifications indicate that the CVBP significantly promotes the pharmaceutical manufacturing firms’ R&D investment. Moreover, the positive effect of the CVBP on R&D investment is stronger in pharmaceutical manufacturing firms with high marketing expenses. A series of robustness tests including the parallel trend test, placebo test, and the PSM-DID analysis show that our findings are solid. This paper advances our understanding of centralized procurement in emerging markets and provides new insights into how governments and pharmaceutical manufacturing firms can strengthen innovation.

To enhance environmental governance for sustainable development, China has made efforts to address environmental issues through formal institutions. The enactment of the new Environmental Protection Law (EPL) in 2015 exerted new institutional pressures on heavy-polluting firms. Our study focuses on examining the phenomenon of greenwashing among these firms after the implementation of EPL. Using difference-in-difference model, we identify that EPL results in an increase in greenwashing behavior by heavy-polluting firms. Furthermore, our research reveals that while EPL implementation enhances disclosure performance in heavy-polluting firms, there is no tangible improvement in substantive environmental performance. These results are supported by various robustness tests that affirm their reliability. Additionally, we uncover that government subsidies exacerbate greenwashing in heavy-polluting firms. In contrast, the availability of slack resources diminishes the impact of EPL on greenwashing behavior. This study not only enhances the understanding of the mechanism of the impact between EPL and firm greenwashing, but also offers suggestions to help the government for better environmental governance as well as firms to engage in environmental behaviors and sustainability.

Purpose: We draw on the resource drain theory to argue that family motivation can lead to work-to-family conflict (WFC) through increased work effort, resulting in negative family outcomes (i.e. negative spousal interactions). Furthermore, we propose family supportive supervisor behaviors as resources from organizations to buffer the negative resource drain. Design/methodology/approach: We conducted a three-wave multi-source survey study involving 297 employee–partner dyads. Findings: We found that family motivation was positively associated with WFC through work effort and ultimately related to negative spousal interactions. FSSBs buffered the negative resource drain pathway from family motivation to negative spousal interactions. Practical implications: For employees, although high family motivation can bring some benefits to their families, our study raises awareness that family motivation can backfire in family life. For organizations, leaders should provide more FSSBs to help family-motivated employees better balance their work and family lives. Originality/value: Our research advances the family motivation and work–family literature by illustrating the resource drain effects of family motivation on employees' family domain.