Peer effects of corporate green innovation: Evidence from China's listed firms

Runxiang Xu, Chao He, Yanxi Li and Lingwen Kong

Finance Research Letters, 2024, vol. 61, issue C

Abstract: We investigate how firms react to their industry and local peers’ commitment to and adoption of corporate green innovation (CGI). We find that in addition to the industry link, the peer effects of CGI also exist on the basis of geographic proximity. We further explore several channels through which the peer effects of CGI are motivated. We show that the industry peer effect of CGI is a response to competitive pressure and risk aversion, while the local peer effect of CGI is mainly driven by a firm's incentives to enhance green reputation. Our findings remain robust when using a spatial econometric model and considering nonlocal leading industry CGI portfolio and regional variations in sensitivities to macro shocks.

Keywords: Green innovation; Peer effect; Competitive pressure; Green reputation (search for similar items in EconPapers)
JEL-codes: G38 O32 Q50 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000552

DOI: 10.1016/j.frl.2024.105025

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