Political risk of green public procurement and firms' green innovation

Jiaxin Wang, Xiang Huang, Chengxin Liu, Di Sun and Zilong Song

Finance Research Letters, 2024, vol. 62, issue PB

Abstract: This paper examines the relation between the political risk of green public procurement and green innovation. Using government leadership change as a research setting, we find that political risk in GPP impedes firms’ green innovation. Moreover, firms that rely more on external financing for green innovation are more vulnerable to this risk. Furthermore, the inhibitory effect of political risk in GPP positively varies with the firm's property right affiliation. Overall, we can conclude that government clients are not entirely low-risk for firms’ green transition.

Keywords: Green public procurement; Political risk; Green innovation; Green credit (search for similar items in EconPapers)
JEL-codes: G31 G32 G38 H53 O31 Q56 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002654

DOI: 10.1016/j.frl.2024.105235

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