Analysts’ Green Coverage and Corporate Green Innovation in China: The Moderating Effect of Corporate Environmental Information Disclosure

Shiliang Hu, Wenhao Dong () and Yongchun Huang
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Shiliang Hu: Department of Accounting, Business School, Hohai University, Nanjing 211100, China
Wenhao Dong: Department of Business Administration, Business School, Nanjing University, Nanjing 210012, China
Yongchun Huang: Department of Marketing, Business School, Hohai University, Nanjing 211100, China

Sustainability, 2023, vol. 15, issue 7, 1-22

Abstract: Against the backdrop of China’s growing environmental concerns, investing in green technology innovation is a crucial solution to achieve the goal of “carbon peak and carbon neutrality”. Combining the perspectives of signaling theory and corporate governance theory, we use a sample of Chinese-listed companies from 2008 to 2020 to investigate the influence of analysts’ green coverage (AGC) on corporate green innovation (CGI) and the moderating effect of corporate environmental information disclosure (CEID) based on a textual analysis approach. The results show that AGC can significantly promote the quantity and quality of CGI, and CEID has a positive moderating effect on the process. Moreover, the mechanism analysis reveals that enhancing investors’ value recognition, improving corporate reputation capital, alleviating corporate financing constraints, reducing management agency costs, and curbing managerial myopia are the influence mechanisms of AGC on CGI. Additionally, the positive effect of AGC is more significant for firms located in regions with a favorable institutional environment, firms belonging to heavily polluting industries, and firms that have not adopted continuous innovation strategies.

Keywords: analysts’ green coverage; corporate green innovation; corporate environmental information disclosure; textual analysis approach (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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