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Environmental regulations and innovation for sustainability? Moderating effect of political connections

Bao Wu, Hanqing Fang, Gady Jacoby, Geling Li and Zhenyu Wu

Emerging Markets Review, 2022, vol. 50, issue C

Abstract: Companies are subject to both formal regulation pressure from government and informal regulation pressure from other stakeholders to adopt green innovations for sustainability. Using a sample of 4924 private Chinese companies, our empirical study indicates that both formal and informal regulation pressures have a positive effect on green innovation. We also find that political connections positively moderate the effect of formal regulation pressure on green innovation, but negatively moderate the effect of informal regulation pressure on green innovation.

Keywords: Environmental regulation; Informal regulation pressure; Formal regulation pressure; Green innovation; Political connections (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1016/j.ememar.2021.100835

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