“…As enterprises with stronger innovation capabilities tend to have better operating performance than those with weaker innovation capabilities, they may be more inclined to disclose environmental information, leading to the endogeneity problem caused by reverse causality (Wooldridge, 2010). Therefore, to address potential endogeneity, in line with Choi et al (2021), Gull, Saeed, et al (2022), and Zubair et al (2020), this study uses the two‐stage least squares method (2SLS) to verify Model (1). 2SLS requires that the selected instrumental variables be strongly correlated with the independent variable and not correlated with the residual error terms (Boubakri & Ghouma, 2010).…”