The Interaction Effect between ESG and Green Innovation and Its Impact on Firm Value from the Perspective of Information Disclosure

Fen Zhang, Xiaonan Qin and Lina Liu
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Fen Zhang: Business School, Shandong Normal University, Jinan 250358, Shandong, China
Xiaonan Qin: Business School, Shandong Normal University, Jinan 250358, Shandong, China
Lina Liu: Business School, Shandong Normal University, Jinan 250358, Shandong, China

Sustainability, 2020, vol. 12, issue 5, 1-18

Abstract: Few studies have been conducted on whether the coexistence of green innovation and corporate social responsibility (CSR) has a favorable interaction effect on firm value. This interaction effect is of great significance for enterprises balancing resource allocation between two factors in the future. Meanwhile, information disclosure can reflect the efforts of enterprises in taking on CSR. Therefore, taking China’s listed companies as an example, this paper studies the interaction effect of CSR after being divided into the three different dimensions of environment, society, and governance (ESG) and green innovation on firm value. The quantile regression method can reflect the impact of CSR and green innovation on the firm value of different levels. The study finds that: (1) green innovation can promote the improvement of medium- and high-level firm value; (2) only the disclosure of environmental and social information can have a positive impact on firm value; (3) the interaction effect between green innovation and social disclosure on firm value is a substitution effect, which will gradually weaken with the increase of firm value. This paper proposes that relevant departments should guide green funds into enterprises with capital constraints to alleviate the issue of fund crowding into CSR and green innovation.

Keywords: green innovation; ESG disclosure; social responsibility; firm value; quantile regression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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