Corporate green innovation behaviour and investment efficiency: evidence from China

Chen Li, Yuminzi Fang and Ce Song

Applied Economics, 2024, vol. 56, issue 36, 4329-4343

Abstract: Corporate green innovation has aroused attention from academics and practitioners in recent years, but the green innovation-investment decision nexus is less explored. Using Chinese-listed firms in the Shanghai and Shenzhen Stock Exchange from 2007 to 2019 as a sample, our research finds that green innovation significantly improves investment efficiency by mitigating over-investment. This finding still holds after addressing endogeneity tests and conducting additional robustness checks. Channel analysis shows that research and development expenditure is an underlying mechanism. Further examinations reveal that green innovation’s influence is more significant in non-politically connected, low-financing-constrained firms and firms with many independent directors. Our paper offers new insights into the influence at firm-level of concrete corporate social responsibility strategies, and the green innovation-investment decision nexus, and presents important policy implications for sustainable development.

Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2023.2210828 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:56:y:2024:i:36:p:4329-4343

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2023.2210828

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().