Strategic or substantive innovation? -The impact of institutional investors' site visits on green innovation evidence from China

Li Jiang and Yu Bai

Technology in Society, 2022, vol. 68, issue C

Abstract: Green innovation is a critical path for enterprises to improve their sustainable development level. As an important external force of corporate governance, institutional investors may play a role in promoting green innovation. This study analyzes the direct effect of institutional investors on green innovation and the moderating effect of firm size, and empirically verifies it with the data from 957 Chinese manufacturing enterprises from 2012 to 2019. We find that institutional investors' site visits are positively correlated with the level of green innovation, and that firm size positively moderates this relationship. Further, this study finds that site visits by pressure-sensitive institutional investors will only induce enterprises to cater to investors and carry out strategic green innovation, while pressure-resistant institutional investors will promote enterprises to carry out substantial green innovation. In additional analysis results, we find that the promotion effect of site visit on green innovation is more significant in enterprises with dual CEO positions and in low-competitive market environment.

Keywords: Institutional investors' site visits; Substantive green innovation; Strategic green innovation; Firm size (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x22000458

DOI: 10.1016/j.techsoc.2022.101904

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