The brain gain of corporate boards and environmental protection spending

This study aims to explore the impact of brain gain in terms of foreign directors on environmental protection spending. Using a sample of heavy-polluting A-share firms listed on the Shanghai and Shenzhen stock exchanges from 2016 to 2019, we find robust evidence that board with more foreign directors spend more on environmental protection and this relationship is more pronounced in stated-owned enterprises. This paper provides important implications for the policy makers to enhance the environmental rules and regulations through better corporate governance.