Corporate Green Innovation Research Articles

CIO leadership, employee digital ability, and corporate green innovation performance–moderating effect of organizational agility and environmental culture

CIO leadership, employee digital ability, and corporate green innovation performance–moderating effect of organizational agility and environmental culture

Digitization and Green Technology Innovation of Chinese Firms Under Government Subsidy Policies

In the context of the digital economy, digital technology is an important driving force to promote green development and achieve the “dual-carbon goal”. Taking 1746 Shanghai and Shenzhen A-share enterprises from 2015 to 2022 as research objects, we empirically examine the relationship between government subsidies, digital transformation, and corporate green technology innovation. The study shows that (1) there is an inverted “U”-shaped relationship between government subsidies and corporate green technological innovation, while digital transformation plays a mediating role, and there is a difference between the quality and quantity of digital transformation in promoting green technological innovation. (2) Through the analysis of the moderating effect, it is found that market concentration has an obvious inhibitory effect between enterprise digital transformation and green technology innovation. (3) The study, by classifying the nature of enterprises, shows that the promotion effect of digital transformation on green technology innovation is weaker under heavily polluted enterprises than under non-heavily polluted enterprises, but the promotion interval of the relationship between government subsidies and green technology innovation is larger. Therefore, enterprises should make full use of digital technology to inject new impetus into their innovation activities, and the government should fully consider the appropriate space for enterprises to receive subsidies, make reasonable use of the incentive effect of government subsidies, and smooth the information docking channels for government and enterprise subsidies.

CEO AI orientation, human resources and green innovation: an attention-based view

PurposeWith the rapid advancement of artificial intelligence (AI) technology permeating various sectors, corporate management has increasingly directed their focus toward AI-driven innovation. Particularly, in response to escalating environmental standards, chief executive officers (CEOs) of manufacturing companies are turning to AI as a strategic tool to address challenges in green innovation. This paper aims to reveal the complex relationship between CEO AI orientation and green innovation through the attention-based view. Furthermore, it seeks to explore strategies to enhance corporate green innovation leveraging CEO AI orientation.Design/methodology/approachThe paper uses computer-assisted text analysis to extract data from annual reports of listed Chinese manufacturing companies and assesses them using negative binomial regression.FindingsThe empirical findings indicate the inverted U-shaped relationship between CEO orientation and green innovation. Initial green innovation performance increases with CEO AI orientation, reaching a peak before declining. Moreover, as CEO AI orientation increases, companies with higher levels of human resource slack are likely to reach the peak of green innovation earlier.Originality/valueFirstly, this paper introduces CEO AI orientation as a novel factor within the framework of the attention-based view for understanding green innovation. Secondly, the study investigates both the benefit effect and the cost effect (resource constraints) of CEO AI orientation on green innovation, examining the inverted U-shaped relationship between CEO orientation and green innovation. Thirdly, this paper explores the moderating effect of human resource slack on the relationship between CEO AI orientation and green innovation, setting the boundaries of CEO AI orientation’s impact on green innovation.

The Impact of Supply Chain Network Structure on Green Innovation: The Mediating Role of Knowledge Absorption

ABSTRACT Green innovation is key to sustainable development. While the supply chain network affects corporate green innovation, the impact of the network’s structure remains unclear. On the basis of data concerning 737 Shanghai and Shenzhen A-share listed companies in China from 2007 to 2023, this study empirically investigates the impact of supply chain network structure (centrality, structural holes) on green innovation (exploratory, exploitative). The results reveal that centrality inhibits green innovation, whereas structural holes promote such innovation. These findings continue to be supported after robustness and endogeneity tests are performed. An analysis of the mediating mechanism reveals that centrality hinders green innovation by inhibiting knowledge absorption, whereas structural holes promote such innovation by facilitating knowledge absorption. Heterogeneity analysis reveals that high-profit enterprises, nonheavily polluting enterprises and enterprises that face low levels of financing constraints utilize supply chain networks to promote green innovation more effectively. The findings of this research provide both theoretical and empirical guidance for enterprises regarding the ability of supply chain network structure to promote green innovation.

Can heterogeneous environmental policies mitigate ESG divergence? -Based on corporate green innovation and bleaching green behavioral options

ESG divergence weakens capital market allocation efficiency, and whether environmental policies can reduce ESG rating divergence by guiding corporate green behavior is a topic of concern. This study examines the effects and mechanisms of diverse environmental legislation on corporate ESG divergence using a sample of Chinese A-share listed businesses from 2016 to 2023. (1) Punitive environmental policies make corporate ESG ratings more divergent, whereas incentive-based policies have the opposite effect; (2) Punitive environmental policies exacerbate disagreements by "forcing" firms to engage in green technological innovation, while incentive-based environmental policies mitigate disagreements by "motivating" firms to engage in greenwashing behavior; (3) Innovatively, the study concludes that the distorting effects of heterogeneous environmental regulations on corporate ESG divergence are mitigated and corrected in an environment with strong green financing and efficient government oversight. According to this paper's conclusions, environmental protection agencies should strengthen the coherence of their policy direction and collaborate to create a powerful force in the formulation of public policy.

How does audit digitalization stimulate corporate green innovation? The mediating role of R&D investment

How does audit digitalization stimulate corporate green innovation? The mediating role of R&D investment

The Levels of Government Environmental Attention and Enterprises’ Green Technological Innovation

This study utilizes data from listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2023 and employs text analysis methods to investigate the impact of government environmental concerns on corporate green technology innovation and its underlying impact mechanisms. The empirical findings demonstrate that heightened government environmental concerns significantly foster corporate green technology innovation. This relationship remains robust across a series of sensitivity analyses. The impact mechanism analysis reveals that increased government environmental concern leads to a heightened intensity of environmental regulation, drives the intelligent transformation of enterprises, and enhances the implementation of corporate environmental strategies, collectively contributing to the improvement of corporate green technology innovation capabilities. Furthermore, the heterogeneity analysis indicates that the effect of government environmental concerns is more pronounced in state-owned enterprises, mature enterprises, and industries with lower pollution levels. This study underscores that the government’s intensified focus on environmental issues can effectively promote corporate green technology innovation, thereby promoting sustainable economic and social development and supporting the dual goals of environmental protection and economic growth.

Institutional pressure and corporate green innovation—the influence of knowledge management process

Institutional pressure and corporate green innovation—the influence of knowledge management process

Digital transformation and corporate green innovation: An affordance theory perspective

Digital transformation and corporate green innovation: An affordance theory perspective

Fintech, financing constraints and corporate green innovation

This study comprehensively analyzes the panel data of 4195 listed companies in the A-share market during the period from 2011 to 2022, aiming to explore the mechanism of fintech's influence on corporate green innovation. The study adopts a two-way fixed effects model to confirm the positive association between fintech and corporate innovation, and reveals the role of fintech in promoting corporate innovation output by alleviating financing constraints with the help of a mediated effects model. The findings suggest that FinTech not only directly promotes firms' innovation activities, but also provides important support for firms' innovation by reducing financing constraints, a finding that is confirmed by a series of robustness tests.On this basis, this paper emphasizes that, in the face of market changes brought about by fintech, firms should proactively adapt to and take advantage of these changes to mitigate the pressure of high costs of external financing by maintaining good credit records and reducing information asymmetry. Such a strategy not only helps firms obtain more funds for R&D and innovation, but is also key to achieving sustainable development goals. In addition, policymakers should also recognize the important role of fintech in promoting business innovation and green transformation and take measures to encourage its development and application for the long-term health of the economy.

How does vertical fiscal imbalance affect corporate green innovation? Empirical evidence from China

The vertical fiscal imbalance of local governments under the Chinese-style decentralization system affects enterprise decision-making in their jurisdiction. Using the data of A-share listed enterprises in Shanghai and Shenzhen, this paper finds that vertical fiscal imbalance can promote enterprises' green innovation. The analysis of the mechanism of action reveals that the vertical fiscal imbalance positively impacts enterprises' green innovation through tax reduction and government R&D subsidies. In contrast, vertical fiscal imbalance's loss of human capital is a negative channel affecting green innovation of enterprises. Further analysis reveals that the vertical fiscal imbalance has a threshold effect on green innovation; the political and environmental backgrounds of senior executives can significantly strengthen the vertical fiscal imbalance's promoting effect on green innovation activities; in addition, the vertical fiscal imbalance can improve the efficiency and quality of green innovation by enterprises. The research findings are significant for further deepening the fiscal reform and encouraging enterprises to achieve green, high-quality enterprise development.

Managerial green foresight and corporate green technology innovation

ABSTRACT Under the strategic orientation of sustainable transformation, managerial green foresight (MGF) is the cornerstone of corporate ability to operate sustainably. However, the effect of MGF on corporate green technology innovation (GTI) is understudied. We measure MGF using textual analysis of Management Discussion and Analysis, and draw on principal–agent theory to explain its positive effect on GTI. Furthermore, this effect is more pronounced for firms with higher levels of analyst coverage. These arguments are supported by a sample of Chinese A-share listed firms. An important managerial insight is that the incremental gains in GTI can be achieved by enhancing MGF.

Environmental regulation and corporate green innovation: evidence from the implementation of the total energy consumption target in China

AbstractUsing a continuous difference-in-differences (DID) model, this study examines the influence of environmental regulations on corporate green innovation. By analyzing a panel dataset of Chinese publicly listed companies spanning from 2010 to 2020, this study finds that stricter total energy consumption target (TECT) policies, in line with Porter’s hypothesis, have encouraged companies to increase their development of green inventions. Additionally, the study reveals that the positive relationship between TECT policies and corporate green innovation is strengthened by market competition and institutional development. Furthermore, the study finds that the Porter effect primarily affects firms operating in pollution-intensive industries within regions characterized by high energy consumption. This suggests that the TECT policies have effectively directed regions with high energy consumption to prioritize energy control objectives over economic expansion goals. These results emphasize the importance of formulating environmental policies that are tailored to the specific characteristics of different regions, sectors, and individual firms. By doing so, a more effective and targeted approach to sustainable transformation can be achieved.

Financial risk prevention and corporate green innovation: A quasi-natural experiment based on the new asset management regulation

In the context of economic globalization in the 21st century, financial risk prevention and corporate green innovation development have emerged as two indispensable themes in global economic growth. This paper selects Chinese A-share listed companies from 2010 to 2021 as a research sample and uses the introduction of the New Asset Management Regulation as a quasi-natural experiment. Employing a generalized difference-in-differences model, this paper identifies the causal relationship between financial risk prevention and corporate green innovation and assesses the policy effects of financial risk prevention. The results show that financial risk prevention significantly enhances the green innovation activities of companies with a high degree of financialization by constraining investments in financial assets and mitigating management's myopic tendencies. Heterogeneity tests reveal that the promotion effect is primarily evident in the service sector, regulated industries, state-owned enterprises, and regions with a higher level of shadow banking development. The findings reveal the value of financial risk prevention at the micro-level of corporate green innovation and provide useful policy implications for guiding finance to effectively serve the real economy.

Corporate green innovation under environmental regulation: The role of ESG ratings and greenwashing

China's economic trajectory has transitioned from prioritizing rapid growth to emphasizing quality, efficiency, and sustainability. In this context, balancing environmental protection with the promotion of a green economy has become increasingly significant. This study investigates the relationship between environmental regulation and green innovation in Chinese enterprises using data from listed companies spanning 2007 to 2019. The results indicate that environmental regulations positively influence green innovation among firms, a finding validated by robustness checks, including instrumental variable methods. Furthermore, the study identifies corporate greenwashing behaviors and environmental, social, and governance (ESG) performance as mediating factors. Firms resort to greenwashing strategies to mitigate regulatory pressures while simultaneously fulfilling their ESG responsibilities, thus contributing to green innovation. Additionally, the study reveals that the impact of environmental regulations on green innovation is heterogeneous, varying according to the external economic environment, firm ownership, and industry characteristics. The positive effect is more pronounced under lower levels of government intervention, in private enterprises, and among energy and new energy sectors. These findings underscore the nuanced dynamics between regulatory frameworks and corporate innovation in China.

How does the state capital participation optimize the corporate green innovation structure: Evidence from listed private firms

This study draws on data from A-share listed businesses in China from 2011 to 2022. The presence of state capital significantly increases business participation in green innovation and improves its structure, transforming strategic innovation into meaningful innovation. The mechanism test demonstrates that using information governance, resource support, and corporate governance, including state capital participation, can enhance companies' green innovation structure. Heterogeneity research reveals that companies' industry pollution levels and greening goals determine whether state capital participation affects corporate green innovation. This link is critical for companies with fewer greening goals and lower pollution levels.

Nudging Toward Internal and External Origin Drivers: A Review of Corporate Green Innovation Research

Nudging Toward Internal and External Origin Drivers: A Review of Corporate Green Innovation Research

Unleashing the impact of environmental information disclosure on corporate green innovation: The role of audit quality and media attention

Green innovation is critical for enterprises to achieve sustainable development, although academics and entrepreneurs often associate it with financial performance. However, more research is needed on the boundary and mechanism of the effect of environmental information disclosure on corporate green innovation. Based on the data of A-share listed companies from the years 2008–2022 in China, this study discusses the impact of environmental information disclosure on green innovation. It analyzes the moderating effects of external audit quality and media attention. The results show that environmental information disclosure promotes green innovation. Further, audit quality and media attention have a positive moderating effect. In addition, this effect is more evident in non-state and heavily polluting industries. Finally, alleviating financial constraints is a critical mechanism for how environmental information disclosure affects green innovation.

Establishment of environmental courts and corporate green innovation

In this study, we empirically examine the impact of establishing environmental courts on corporate green innovation and further explore the underlying channels driving our findings. Using A-share listed firms in China's stock markets from 2008 to 2022, we show that the establishment of environmental courts is positively correlated with corporate green innovation and corporate investment efficiency can partially mediate this above relationship. Overall, our results provide clear policy implications for institutional design and firm practices on green activities.

The effect of outward foreign direct investment on corporate green innovation in China

ABSTRACT The paper explores the impact of outward foreign direct investment (OFDI) on corporate green innovation. To achieve this, this study applied the Poisson regression to analyse a sample of 1,874 Chinese firms over 11 years. The main findings show that OFDI positively impacts corporate green innovation. The relationship is positively moderated by CEO attributes, i.e. international CEO education, CEO political connections, and CEO power. The findings contribute to the corporate environmentalism literature by examining how OFDI drives firms’ green innovation strategies.