Green innovation and enterprise reputation value

Abstract

Using the data of Chinese listed enterprises in 2007-2020, we investigate the relationship between green innovation (GI) and enterprise reputation via OLS regression, IV-Lasso, and random forest. Findings show that GI can improve enterprise reputation, and it has a significant positive lag effect. Additionally, we compare the different effects of green patent applications and approved green patents. A possible mechanism is that GI reduces the pollution emission of enterprises. GI also performs better in improving the reputation of coastal enterprises, state-owned enterprises and large-scale enterprises, and old enterprises. Our finding on the causal relationship between GI and enterprise reputation is of great significance in further understanding the practical value of GI activities, and it has certain reference value for the policy formulation of governments and decision making of enterprises.

Corporate green innovation and stock liquidity in China

“…The adoption of a sample of Chinese companies to achieve our research objectives is instrumental in drawing applicable conclusions that can provide policy inspiration to other emerging developing as well as developed countries. Moreover, as mentioned above, corporate green innovation developed rapidly in China in the last decade and received considerable attention from scholars (Chen, Hao, et al, 2022; Hao et al, 2022; Li et al, 2019), thereby ensuring the reliability and representativeness of our findings. Second, the Chinese stock market is the fastest‐growing and largest emerging market (Li & Li, 2022).…”

“…Lin et al (2020) argued that firms' green innovation strategies can also reduce firm idiosyncratic risks. Moreover, green innovation also contributes to firms' reputation and brand value (Chen, Hao et al, 2022; Lin et al, 2021), which can help firms create a positive image in the market and improve their green core competitiveness (Chang, 2011; Chiou et al, 2011). Prior studies also showed that green innovation enables firms to obtain increased government support and credit loans to alleviate their financing constraints (Owen et al, 2018; Xing et al, 2021).…”

“…Moreover, green innovation can achieve differentiation and high profitability by improving product design and product quality (Chen et al, 2006). Second, green innovation is an environment‐oriented behaviour that can help improve an enterprise's environmental reputation and corporate image (Chen, 2008; Chen, Hao, et al, 2022; Lin et al, 2021; Xie et al, 2019). Green innovation can also reduce firm idiosyncratic risks (Lin et al, 2020).…”

“…In the context of environmental protection promotion, green innovation represents enterprises' environmental protection efforts. Green image is conducive to improving firm reputation and brand value (Chen, Hao, et al, 2022; Lin et al, 2021), which can enhance firms' competitive advantage in the market, thereby increasing their market share and creating improved economic benefits (Chang, 2011; Chiou et al, 2011). Third, green innovation can help firms obtain loans easily and receive large subsidies from the government to promote the sustainability of economic development (Huang et al, 2019; Owen et al, 2018; Xing et al, 2021).…”

“…In terms of financial performance, on the one hand, clean production costs decrease after the use of green innovation, which can improve productivity (Chen et al, 2006; Sun et al, 2019). On the other hand, the literature shows that green innovation can reduce firm risks (Lin et al, 2020) and improve corporate reputation (Chen, Hao, et al, 2022), brand value (Lin et al, 2021), performance (Tang et al, 2018), and competitiveness (Tu & Wu, 2021). Moreover, green innovation can help companies obtain additional loans and reduce financing constraints (Xing et al, 2021).…”