The 3rd SOB Research Seminar: “Go Green when you are pinned: Do climate change action plans work? Evidence from Chinese firms”

On April 14^th, 2022, School of Banking, UEH College of Business (COB) organized the 3rd SOB Research Seminar (SRS 2022) with “Go green when you are pinned: Do climate action plans work? Evidence from Chinese firms” theme. The seminar attracted 30 lecturers and researchers to attend via in-person and Webex online formats.

The 3^rd SOB Research Seminar (SRS 2022) with “Go green when you are pinned: Do climate action plans work? Evidence from Chinese firms” Theme received the presentations of 2 keynote speakers: Dr. Huynh Luu Duc Toan and Dr. Hoang Khanh. This was the first time these two authors had collaborated on presenting their papers and participating in discussions with invited guests. Dr. Huynh Luu Duc Toan is currently a senior lecturer at the University of Southampton (the UK) and Vice Editor-in-Chief of JABES, University of Economics Ho Chi Minh City and Dr. Hoang Khanh is a lecturer at Lincoln University (New Zealand) and National Economics University, Hanoi.

In this research, the group of authors evaluated the reactions of Chinese firms towards the recent commitments of the Chinese Government in terms of decreasing greenhouse gases and preventing climate change. The team of authors forecasted that energy-intensive and greenhouse-gases-releasing firms in China will increase the use of diversified strategies to react to the new commitments of the Government in terms of reducing emissions. Utilizing the Paris Agreement at the COP21 event (in 2015) as an observation point, the research had found evidence that heavy-emission firms tend to diversify their revenue more than others. Additionally, the research figured out three transmission channels (including technological innovation, state ownership and liquidity) through which the new commitments to reduce emissions had affected the strategy of diversification of firms. The research findings imply that the reactions of heavy-emission firms in China are mainly short-term; therefore, many “hidden things” in the project of reducing emissions of the Chinese Government are exisiting.

The overview of the Seminar

The presentation took place completely excitingly with various discussion queries from lecturers and invited guests attending in-person and online. Dr. Phan Chung Thuy - School of Banking - started the discussion session with the context of research and recommended research orientation while the research orientation of the authors was in contrast to previous ones. Dr. Ho Quoc Thong - Lecturer in School of Economics - discussed and suggested supplementing proofs of the integration between the strategy of diversification and emission reduction due to the explanation for the reasonableness of the research theory on the strategy of diversification as a solution for firms to adapt to the commitment to reduce emissions. Moreover, Dr. Ho Quoc Thong recommended adding further results of changes in corporate behaviors each year (after the event in 2015) and an appendix showing the relationship between the strategy of diversification and the effectiveness of firms.

Dr. Ho Quoc Thong raised his discussion questions

Adding to the recommendations of Dr. Phan Chung Thuy and Dr. Ho Quoc Thong, Dr. Nguyen Thi Hong Nhung assumed that China was a suitable context to analyze by monitoring the behaviors of firms toward the commitment to preventing climate change. In addition to that, Dr. Nguyen Thi Hong Nhung gave some solutions for the strategy of diversification of governmental firms and suggested the group of authors consider supplementing other actions of firms when reacting to the commitment of the government to emission reduction and climate change prevention. Furthermore, Dr. Vu Thi Le Giang recommended adding explanations about the modification of the strategy of diversification of firms while watching charts and time frames (within 2 years). Dr. Giang’s questions involved the valid time and plan to take place the commitment of emission reduction of the Chinese Government. Similarly, Dr. Ngo Minh Vu - School of Banking - questioned the transmission mechanism of the “technological innovation” in the correlation between emission reduction risks and the strategy of diversification when firms were diversifying technologically. Finally, Dr. Pham Thi Anh recommended the group of authors to supplement result discussions related to the impacts of macro-control variables on the firms’ diversification strategy.

Dr. Hoang Khanh’s answering part

Beside direct discussions, the seminar received detailed comments from Dr. Pham Khanh Nam - Deputy Head of College of Economics, Law and Government. Dr. Pham Khanh Nam pointed out the internal problems towards the research in terms of theory frame, methodology used to measure the risks of emissions and diversification as well as other problems within the research scope and methodology. Remarkably, Dr. Pham Khanh Nam supposed that the paper did not clarify the different reactions (diversification and investing in regenerative technology) of firms towards environmental law. Because Dr. Pham Khanh Nam thought: even though the investments in R&D are successful, the complete replacement of manufacturing technology will be extremely costly; therefore, increasing the capital and the price of products. Firms, generally, will not invest in changing their manufacturing technology but will consider purchasing the emission-permission certificate instead. However, purchasing the emission-permission certificate is not included in category diversification. The doctor emphasized that category diversification is not much different from manufacturing diversification or environmentally-friendly technological modification. Comprehensively, most constructive comments contributed to assisting the paper to be perfect and better in the future.

The seminar ended successfully. This is a periodical activity affiliated with the Scientific Seminar Series of School of Banking in 2022 aiming to create an academic exchange forum between lecturers and researchers of UEH, especially to update new research orientations in the field of economics and finance - banking.

Dr. Hoang Hai Yen sent memorable presents to Dr. Huynh Luu Duc Toan and Dr. Hoang Khanh

The Board of Organizing took a photo with the speakers

With the orientation of being a research university reputable in the Asian Region, University of Economics Ho Chi Minh City is continuously promoting scientific conferences and research, and activities connecting to the community of scientists to contribute valuable knowledge achievements and serve for the development of the country.

News, photos: School of Banking (UEH College of Business), Department of Marketing and Communication