Two-way fixed effects versus panel factor-augmented estimators: asymptotic comparison among pretesting procedures

Han, Minyu; Kwak, Jihun; Sul, Donggyu

doi:10.1080/07474938.2021.1957282

Cited by 2 publications

(2 citation statements)

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“…Panel data explore the potential information in the model in both time and cross‐sectional dimensions. The two‐way fixed‐effects model used in this paper has both “individual effects” and “time effects” (Han, Kwak, & Sul, 2022). For the problems in this paper, there may be omitted variables that do not change over time because of the different starting points and growth rates of each firm's green innovation (i.e., there is an “individual effect” of corporate green innovation).…”

Section: Methodsmentioning

confidence: 99%

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Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

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The objective of this study is to examine the impact of government environmental concerns on green innovation and whether this has a “leverage effect” or a “crowding‐out effect.” This study employs a two‐way fixed‐effects model to conduct an empirical test using panel data from 2010 to 2020 on Chinese firms listed in heavy‐polluting industries. The results suggest that an increase in government environmental concerns can promote corporate green innovation. However, government environmental concerns primarily stimulate strategic innovation rather than substantive innovation. After a series of robustness and endogeneity tests, the conclusions of this paper still hold. Corporate green innovation induced by government environmental concerns is not the “leverage effect” superimposed on existing innovation activities but the “crowding‐out effect” of other technological innovation. The heterogeneity tests in this paper indicate that the impact is more pronounced for firms with poorer environmental conditions, stronger political connections, and richer executive backgrounds.

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Section: Methodsmentioning

confidence: 99%

“…Panel data explore the potential information in the model in both time and cross-sectional dimensions. The two-way fixed-effects model used in this paper has both "individual effects" and "time effects" (Han, Kwak, & Sul, 2022).…”

Section: Methodsmentioning

confidence: 99%