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 :

April 05 2018
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  • state ownership • 
  • environmental engagement • 
  • Sustainability • 
  • ownership structure

In a 2010 report, The Economist called the resurgence of state-owned mega-en- terprises, especially those in emerging economies, “Leviathan Inc.”, and criticized their poor governance and e ciency. We show that stateowned enterprises engage more in environmental issues and are more responsive to salient envi- ronmental events and change in government’s political orientation.

The e ect is more pronounced in energy rms from emerging economies and countries with higher energy risks, and with direct shareholdings by domestic government rather than sovereign wealth funds. Firm performance does not su er from such engagement, suggesting that “Leviathan Inc.” may be better positioned at dealing with environmental externalities.


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