 Institutional investor cross-ownership networks and green innovation: Evidence from ChinaJia He and Xixi Shen International Review of Economics & Finance, 2024, vol. 96, issue PB Abstract: This paper examines the effect of network centrality, a measure of the extent and strength of a firm's connections formed by institutional investor cross-ownership (IICO), on corporate green innovation. Using a sample of Chinese-listed firms between 2003 and 2019, we demonstrate that corporate green innovation is positively correlated with the network centrality of IICO. This finding is more pronounced for firms that have low R&D investment and for non-state-owned firms than for other firms. Regarding the influence mechanisms, we find that network centrality promotes green innovation by enabling information transmission, alleviating managers' career concerns, and enhancing external monitoring. Further analyses suggest that network centrality affects both the quantity and the quality of corporate green innovation. Our paper provides insight into how to promote green innovation and accelerate the transformation of firms toward sustainable practices. Keywords: Green innovation; Network centrality; Institutional investor cross-ownership (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:96:y:2024:i:pb:s105905602400649x DOI: 10.1016/j.iref.2024.103657 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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