Can social trust foster green innovation?

Deyu Liu, Kefan Wang and Jialin Liu

Finance Research Letters, 2024, vol. 66, issue C

Abstract: This paper analyzes the impact of social trust (ST) on corporate green innovation (CGI) using data from Chinese A-share listed companies from 2012 to 2021. ST is found to contribute to CGI enhancement. In addition, financing constraints and agency costs are important intrinsic mechanisms, and ST promotes CGI by alleviating financing constraints and reducing agency costs. Further analysis reveals that the promotion of CGI by ST is affected by the heterogeneity of the degree of market competition and that there is a complementary relationship between ST and the formal institution.

Keywords: Social trust; Informal institutions; Green innovation; Financing constraints; Agency costs (search for similar items in EconPapers)
JEL-codes: M14 M21 Q55 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324006743

DOI: 10.1016/j.frl.2024.105644

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