Abstract
Few studies have been conducted on whether the coexistence of green innovation and corporate social responsibility (CSR) has a favorable interaction effect on firm value. This interaction effect is of great significance for enterprises balancing resource allocation between two factors in the future. Meanwhile, information disclosure can reflect the efforts of enterprises in taking on CSR. Therefore, taking China’s listed companies as an example, this paper studies the interaction effect of CSR after being divided into the three different dimensions of environment, society, and governance (ESG) and green innovation on firm value. The quantile regression method can reflect the impact of CSR and green innovation on the firm value of different levels. The study finds that: (1) green innovation can promote the improvement of medium- and high-level firm value; (2) only the disclosure of environmental and social information can have a positive impact on firm value; (3) the interaction effect between green innovation and social disclosure on firm value is a substitution effect, which will gradually weaken with the increase of firm value. This paper proposes that relevant departments should guide green funds into enterprises with capital constraints to alleviate the issue of fund crowding into CSR and green innovation.
Highlights
Green innovation has been evolving vertically and horizontally in every dimension, from the micro enterprise level to the macro national level, which has an important impact on the green development of enterprises of different countries around the world
From the perspective of information disclosure, this paper examines the interaction effect of social responsibility, which is divided into the three dimensions of environment, society and governance, and green innovation on firm value
Since the quantile method is able to test the influence of green innovation and social responsibility on firm value at different levels, this study was able to draw the following conclusions: (1) Green innovation plays a stronger role in promoting medium- and high-level firm value
Summary
Green innovation has been evolving vertically and horizontally in every dimension, from the micro enterprise level to the macro national level, which has an important impact on the green development of enterprises of different countries around the world. A growing number of enterprises have recognized the importance of social responsibility, and both social responsibility and green innovation are beneficial to the future sustainable development of enterprises [1]. In the case of the coexistence of green innovation and social responsibility, the question remains of whether they have an interaction effect on firm value. If so, are they complementary to each other and jointly promote the growth of firm value, or are they mutually substitutive and squeeze each other’s capital investment?
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.