R&D and environmentally induced innovation: Does financial constraint play a facilitating role?

Dongyang Zhang and Yue Jin

International Review of Financial Analysis, 2021, vol. 78, issue C

Abstract: The improvement of sustainable economic growth is a necessity. One issue facing policymakers is facilitating green innovation. This paper constructs a model and explores the relationship between R&D expenditures and green patents, and investigates the impact of financial constraints on green innovation output. Based on the theoretical model assumptions and the data of listed companies in China from 2007 to 2019, this paper draws the following conclusions after the empirical tests: First, R&D expenditure is significant and drives green innovation as measured by green patents. Second, contrary to the positive relationship between R&D expenditure and green patents, financial constraints discourage green innovation. Third, financial constraints facilitate R&D investment efficiency, which results in enhancing the positive effect of R&D on green innovation.

Keywords: R&D expenditures; Financial constraint; Environmental induced innovation (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521921002441
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:78:y:2021:i:c:s1057521921002441

DOI: 10.1016/j.irfa.2021.101918

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().