This paper examines renewable energy (RE) investment and the role of a country's legal system in shaping investment decisions. Analysing data from 236 renewable energy companies between 2000 and 2017 across the world, our study establishes that those in a common law system are more responsive to growth opportunities in RE investment, while facing greater financial constraints than their counterparts in civil law systems. Our study demonstrates that the global imbalance in RE development is caused by the influence of a country's legal system, which determines the regulatory and business ethos that impacts on the trajectory of investment, and by the varying degrees of accountability implicit in a country's governance environment. Our research raises the implication that the opportunity costs of forgone economic gains are in direct conflict with long‐term environmental goals, retarding the transition from carbon‐based to sustainable sources of energy, and provides insights into how development can be stimulated by fiscal incentives, favourable regulations, societal engagement, improved access to finance and the alignment of national strategies. Our findings contribute to the economic literature of legal origin theory and establish fundamental principles for refining global RE development strategy and confronting the challenge of climate change.

This study examines public trust in government and public belief in its truthfulness in respect of the measures it is taking to combat COVID‐19. Analysing global data from the International Coronavirus Survey of 178 countries between 20 March and 8 April 2020, we establish that integrated government response policies, underpinned by containment health measures and economic reliefs, are crucial to winning public trust and support. We find that a one standard deviation increase in composite government response measures leads to a 0.353% increase in public trust in government and a 0.414% increase in public belief in its truthfulness. The impacts vary according to legal systems, whose political ethos determines the quality of welfare services and their ability to respond to citizens’ needs during a public health emergency. Further, public trust in government measures differs in relation to how a country's system of governance and institutional culture respond to meet public expectations, with citizens’ attitudes influenced by the fairness, effectiveness and accountability of government agencies. Most importantly, our evidence consistently demonstrates that the provision of impartial, transparent and truthful government communications is vital for maintaining public trust. Moreover, experience gained from previous pandemics, reinforcing a nation's preparedness and responsiveness to future public health crises, is crucial to ensuring citizens’ confidence in government competence. Overall, our original investigation reveals a contention between the exigencies of government policies and public expectations in a global health emergency, and has profound implications for public management and business and economic regeneration in the aftermath of the pandemic, laying the foundations for future research.

This paper examines how CEO power and CSR-linked compensation influences environmental performance. We investigate the role of CEO managerial power (proxied by CEO duality and the presence of executive directors on the board), and CEO legitimate power (proxied by CEO tenure), adopting three measures of environmental performance, including the environmental scores, carbon emission scores and a composite index assessing the level of a firm’s engagement in several environmental practices. Analysing a sample of FTSE-All-Share companies for the period 2011–2019, we find that CEOs who receive compensation from engagement in environmental activities are motivated to improve environmental performance. Moreover, newly appointed CEOs engage more in environmental initiatives, suggesting that they use it as a signal to mitigate career concerns in their early tenure, whereas CEOs with managerial power engage less in environmental projects due to the costs associated with them. These effects are stronger in firms with independent and diverse boards, firms operating in the environmentally sensitive sectors and non-loss-making firms. This study provides original evidence of the role of environmental-linked incentives and managerial power in managing environmental impact and optimising the environmental performance of their companies.

The devastating impact of the climate crisis has led many countries to promulgate regulations that hold businesses accountable for their environmental externalities. However, while these formal constraints compel businesses to fulfill their legal obligations, scholars argue that acting in a socially and environmentally responsible way requires more than mere compliance with the law. Accordingly, we provide novel evidence of how the concept of social justice, implicit in society as an informal construct, underpins firms’ ethical behavior, compelling them to accept their social responsibilities by reducing their environmental violations, implementing procedures to prevent further infractions, and repairing the breach in social trust that their transgressions have caused by engaging in restorative acts. Based on unique environmental violation and remedial action data from 2007 to 2022 in China, we establish that social trust significantly lowers a firm’s propensity to commit further ecological abuses. We also determine that firms in high-trust regions are more likely to undertake remedial actions in the aftermath of an environmental breach. Moreover, cross-sectional analyses reveal that the relationship between social trust and environmental violations is more pronounced for firms that face greater reputational pressure from higher media reporting, analyst coverage, auditing by Big Four auditors, and institutional site visits. This study augments the literature on environmentalism and argues that social trust also shapes corporate ethical behavior in addition to regulatory pressures.