Internal Control and Enterprise Green Innovation

Ping Wang, Hua Bu and Fengqin Liu
Additional contact information
Ping Wang: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Hua Bu: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Fengqin Liu: Graduate School, Sehan University, Noksaek-ro 1113, Samho-eup, Yeongam-gun 58447, Korea

Energies, 2022, vol. 15, issue 6, 1-20

Abstract: Green innovation has become an important support to promote the strategic goals of peak carbon dioxide emission and high-quality economic development. This paper systematically examines whether internal control can effectively drive enterprise green innovation and achieve the “win–win” result of enterprise economic development and environmental protection. We found that internal control can significantly improve the green innovation level of enterprises, which is mainly reflected in the mandatory disclosure stage of internal control information and the other four elements of internal control, except the control environment. The mechanism test found that internal control can promote green innovation by reducing enterprise risks, alleviating agency conflicts, relieving financing constraints, and improving the rationality of innovation investment. The heterogeneity test found that the promotion effect of internal control on green innovation is more significant in large enterprises and private enterprises; internal control can effectively supervise the maintenance of relationship resources, and relationship resources positively regulate the promotion effect of internal control on green innovation; excessive executive power will weaken the internal control supervision and punishment of executives, and weaken the positive effect between internal control and green innovation; internal control can improve the utilization rate of government subsidies, and government subsidies positively regulate the positive effect of internal control on green innovation. The research conclusions enrich the market-oriented research on the driving factors of enterprise green innovation, and provide empirical evidence for enhancing the competitiveness of enterprise green innovation and achieving carbon neutrality.

Keywords: green innovation; green development; carbon neutrality; internal control; government subsidies; enterprise characteristics (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://www.mdpi.com/1996-1073/15/6/2193/pdf (application/pdf)
https://www.mdpi.com/1996-1073/15/6/2193/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:15:y:2022:i:6:p:2193-:d:773131

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().