The Impact of Environmental Uncertainty on Corporate Innovation: Evidence from Chinese Listed Companies

Mingjun Deng, Xusheng Fang, Ziyan Tian and Wenbing Luo
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Mingjun Deng: Big Data and Intelligent Decision Research Center, Hunan University of Science and Technology, Xiangtan 411201, China
Xusheng Fang: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Ziyan Tian: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Wenbing Luo: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China

Sustainability, 2022, vol. 14, issue 9, 1-19

Abstract: Corporate innovation is an important topic in the academic community, but there are few studies on the impact of the micro operation environment on corporate innovation. Using the data of A-share listed companies in Shanghai and Shenzhen from 2009 to 2020, this paper examines the impact of environmental uncertainty on enterprise innovation from a micro perspective. The results show that there is an overall negative correlation between environmental uncertainty and corporate innovation. Companies facing a higher degree of environmental uncertainty are more cautious in their innovation investment. We also find that this negative correlation was more pronounced in companies with weaker risk-taking ability. Further research finds that financing constraints have a partial intermediary effect on the impact of environmental uncertainty on innovation, that is, environmental uncertainty can have a negative impact on innovation by increasing the financing constraints faced by corporations. Our research provides micro-level evidence for the impact of uncertainty on corporate innovation.

Keywords: environmental uncertainty; corporate innovation; financing constraints; risk-taking ability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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