Analysis of the determinants of market capitalisation: Innovation, climate change policies and business context

Rosa Puertas, Patricia Carracedo, Garcia−Mollá, Marta and Virginia Vega

Technological Forecasting and Social Change, 2022, vol. 179, issue C

Abstract: The issue of global warming is now on the agenda of all national governments. It is essential to understand the extent of the possible consequences of this scourge, which threatens all territories without exception. The growing need to curb global warming requires companies to adopt specific measures that can ultimately affect both their income statement and their public image. This research seeks to provide decision makers with valuable information that can guide policies aimed at mitigating climate change without damaging private investment. First, data envelopment analysis (DEA) is used to determine the efficiency of investments in research and development (R&D) made by the most innovative European companies. Second, a multilevel regression (MR) is run to analyse the impact that environmental policies, the business context and the efficiency of innovation exert on market capitalisation. The analysis focuses solely on European territory in 2019. The results reveal a pattern of behaviour by the countries and industries whose R&D spending has enabled them to optimise their output. In addition, the study identifies environmental measures that boost companies' share price, along with innovation, business confidence and the lifting of restrictions on foreign investment.

Keywords: Innovation; Environmental policies; DEA; Multilevel regression; Business context (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162522001767
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:tefoso:v:179:y:2022:i:c:s0040162522001767

DOI: 10.1016/j.techfore.2022.121644

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().