Leviathan Inc. and Corporate Environmental Engagement

Leviathan Inc. and Corporate Environmental Engagement

Pedro Matos, Hao Liang, Po-Hsuan Hsu

Series number :

Serial Number: 

Date posted :

September 04 2017

Last revised :

September 12 2017
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  • state ownership • 
  • environmental engagement • 
  • Sustainability • 
  • ownership structure

In a 2010 special report, The Economist called the resurgence of state-owned mega-enterprises, especially those in emerging economies, “Leviathan Inc,” and criticized their poor governance and low efficiency. We show that state-owned enterprises engage more in environmental issues and are more responsive to salient environmental events.

The effect is more pronounced in energy firms located in emerging economies and countries with higher energy risks, and with direct ownership held by domestic government rather than sovereign wealth funds. Market value does not suffer from such engagement. These results suggest that “Leviathan Inc.” may be better positioned at dealing with environmental externalities.


Real name:
Po-Hsuan Hsu
Real name:
Hao Liang
Singapore Management University, Lee Kong Chian School of Business
Real name: 
Research Member
Darden School of Business, University of Virginia