ESG divergence and corporate strategic green patenting

Xiaojuan Hou and Guanxia Xie

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: Based on a sample of Chinese A-share listed companies from 2010 to 2020, we find that ESG divergence motivates companies to engage in green innovation patent applications, but such behavior is more strategic than genuine quality improvement. Following thorough robustness checks, this conclusion remains unchanged. We find that among large-scale enterprises, those with more government subsidies, and those with more severe agency problems, ESG divergence leads to more apparent green innovation behaviors aimed at increasing the quantity and reducing quality. Moreover, we observe that ESG investors magnify the relationship between ESG analysis and strategic patenting.

Keywords: ESG divergence; Patent quantity; Patent quality; Strategic behavior; ESG investors (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009449

DOI: 10.1016/j.frl.2024.105914

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