Search Results (25)

Using the “Policy Pressure-Innovation Alignment-Performance Transformation” theory, this paper looks at how ESG ratings, green innovation, and corporate dual-organizational performance are linked. This study uses a multi-period Difference-in-Differences (DID) model in conjunction with a conditional mediation effect model to examine how ESG ratings causally influence substantive green innovation, which in turn improves corporate financial and environmental performance. Regression results show that corporate ESG ratings have a big effect on the performance of both organizations. ESG ratings have a bigger effect on financial performance, while ESG scores have a bigger effect on environmental performance. Looking at the sub-dimensions shows that policy ratings have immediate effects on environmental performance and delayed effects on financial performance. The conclusion that the internalization response of corporate environmental costs is timely, while the market revaluation has a delayed transmission effect, holds true after being tested through parallel trend analysis and synthetic DID testing. More research shows that differences in ESG ratings hurt financial performance but help environmental performance. This means that differences in ESG ratings may lead to more real green innovation activities, which have a direct effect on the environment and, in the end, lead to bigger improvements in environmental performance. The moderating effect test shows that being aware of the environment makes substantive green innovation more focused on quality by making people feel responsible for their actions. Also, environmental management leads to more corporate green patents, which has resource displacement effects and makes green patent innovations less effective. Heterogeneity analysis shows that state-owned businesses use their institutional advantages to improve the “quality-quantity” of substantive green innovation, which helps their corporate green development performance. Declining businesses push for green innovation to fix problems that are already there, but mature businesses don’t like ESG rating policies because they are stuck in their ways, which stops them from making real progress in green innovation. This paper ends with micro-level evidence and theoretical support to solve the “greenwashing” problem of ESG and come up with “harmonious coexistence” policy combinations that work for businesses. Full article

The partnership between government and market plays a crucial role in allocating green resources and fostering collaboration across organizations and departments. It integrates diverse knowledge types into the green innovation process and offers multifaceted insights into enterprises’ responses to green governance decisions. However, existing research predominantly examines the interplay among government green governance instruments, with insufficient exploration of the synergistic impacts of government and market in green governance. This study constructs a capacity coupling coefficient model to measure the synergy degree of “government–market” green governance (GMGG). Exploiting a balanced dynamic panel of 28,451 firm-year observations for 3807 Chinese listed companies from 2010 to 2020, we estimate the causal effect of GMGG synergy on corporate green innovation (CGI) and further dissect the underlying transmission mechanisms as well as the moderating channels through which the effect operates. Empirical results reveal that the effect of GMGG synergy on CGI is subject to diminishing marginal returns, with the effect being significantly more pronounced for substantive green innovation. Heterogeneity analysis indicates that non-state-owned firms, eastern-region firms, and those in non-heavy-polluting industries respond with markedly greater sensitivity. Mechanism analysis further demonstrates that the extent of marketization serves as a mediating channel, whereas an elevated level of digital-economy development mitigates the impact of GMGG synergy on CGI. This study delineates the effective boundary of GMCC synergy in stimulating CGI, providing empirical benchmarks for the synergistic implementation of effective government and efficient market actions in green governance. It further corroborates the positive roles of marketization and the digital economy as novel governance instruments, thereby offering critical policy insights for the coordinated advancement of the “dual-carbon” goals and high-quality economic development. Full article

In the context of the “dual-carbon” goal to promote the green and low-carbon transformation of the economy, the mechanism of environmental regulation as a core policy tool for carbon emission reduction remains theoretically controversial. Based on this, this paper uses panel data from 30 provinces in China from 2015 to 2022 and adopts a two-way fixed-effects analysis method to examine the direction and intensity of the impact of environmental regulations on carbon emissions, introducing industrial intelligence and green technological innovation as mediating variables. Research indicates that (1) for every 1-unit increase in the intensity of environmental regulation, carbon emissions are reduced by about 0.9866 units on average, and its carbon emission reduction effect is more significant in the eastern region, where the proportion of secondary industry is medium and high, as well as in non-technology-intensive regions. (2) Industrial intelligence and green technological innovation play a partial mediating role between environmental regulations and carbon reduction. (3) After categorizing green technology innovations, it is found that environmental regulations do not significantly incentivize substantive green technology innovations, but they can contribute to carbon emission reduction by promoting the development of strategic green technology innovations. (4) The analysis of spatial effects shows that carbon emissions in China’s provinces are characterized by significant spatial agglomeration. Enforcement of environmental regulations also exerts a suppressive effect on carbon emissions in adjacent provinces, and its carbon emission reduction effect is characterized by “total effect > indirect effect > direct effect”. Compared with existing studies, this paper elucidates the transmission mechanism whereby environmental regulation achieves carbon emission reductions through industrial intelligence and green technological innovation, thereby contributing a novel analytical framework for examining regulatory impacts on carbon emissions while furnishing actionable policy implications for facilitating socioeconomic greening and low-carbon transitions. Full article

Under the pressure of global low-carbon transformation, the sustainable development initiative of the United Nations has gradually become an essential orientation of corporate Environmental, Social, and Governance (ESG) performance. Based on the integrated theoretical framework of sustainable development finance, this work explores the relationships among corporate ESG performance, its financing constraints in China, and its influencing mechanism, as well as the role played by green innovation in this relationship. Using a comprehensive panel dataset of 1038 A-share listed companies from 2013 to 2023, totaling 11,418 observations, we find that corporate ESG performance and financing constraints exhibit a significant negative relationship, indicating that strong corporate ESG performance can effectively alleviate corporate financing constraints. To address endogeneity concerns, we employ a systematic generalized method of moments (GMM) and a two-stage least squares regression using lagged instrumental variables. The results of the mechanism test show that ESG performance mitigates financing constraints by reducing perceived financial risks, improving information transparency, and increasing access to government green subsidies. Furthermore, moderating effect analysis reveals that green innovation strengthens the mitigating effect of corporate ESG performance on financing constraints in this process, based on SDG 9. Heterogeneity analysis reveals that this mitigating effect of corporate ESG performance on financing constraints is more pronounced for firms in China’s economically advanced eastern region, for companies facing harder budget constraints, and in the period following the implementation of the stringent new Environmental Protection Law. Distinguishing between genuine and symbolic corporate actions, we provide evidence that only substantive ESG improvements, as opposed to “greenwashing,” are rewarded by capital providers. The findings provide insights for the formulation of government policies and corporate sustainability strategies in emerging markets. Full article

Amid global resource shortage and severe climate problems, green innovation has become the key for enterprises to achieve sustainable development, and supply chain digitization brings a new opportunity to enhance the green innovation capability of enterprises. Therefore, this paper empirically investigates the differential effects of supply chain digitization (SCD) on two different green innovation strategies, namely substantive green innovation (SGI) and tactical green innovation (TGI), with 38,548 observations of Chinese listed companies in the 17-year period from 2007 to 2023 using an innovative double machine learning model. It is found that SCD can significantly enhance the substantive and tactical green innovation capabilities of enterprises, and the promotion effect on the former is more obvious. Mechanism analysis shows that SCD promotes substantive green innovation by improving the ESG (Environmental, Social, and Governance) performance of enterprises, and promotes tactical green innovation by improving the management efficiency of supply chain nodes. Heterogeneity analysis shows that SCD promotes green innovation more significantly for high-tech firms, firms with high degree of internal control and low financing constraints. Our paper can be informative in addressing this differential impact of supply chain digitization on different types of corporate green innovation. Full article

With the increasing global emphasis on sustainable development goals, and in the context of pursuing high-quality sustainable development of the economy and enterprises, this study empirically examines the effect of digital finance on corporate financing constraints and the impact on corporate green innovation with a sample of China’s A-share-listed companies in the period of 2011–2020 and explores the issue from the perspectives of management power and corporate social responsibility (CSR) at the micro level of enterprises. The empirical results show that digital finance can indeed alleviate corporate financing constraints. Still, the synergistic effect of the two on corporate green innovation produces a “quantitative and qualitative separation” effect, which only promotes the enhancement of iconic green innovation, and the effect on substantive green innovation is not obvious. The power of management and CSR performanceshave different moderating roles in the alleviation of financing constraints by the empowerment of digital finance. Management power and corporate social responsibility have different moderating effects on digital financial empowerment to alleviate financing constraints. The findings of this study enrich the research in related fields and provide more basis for the promotion of digital financial policies and more solutions for the high-quality development of enterprises. Full article

As a critical external mechanism driving green innovation, institutional and competitive pressure often coexist and jointly shape firms’ strategic responses. However, existing studies primarily focus on the individual effects of these pressures, with limited attention to their interactive impacts on green innovation. Drawing on optimal distinctiveness theory, this study proposes a “pressure–response” analytical framework that classifies institutional and competitive pressure combinations into congruent (i.e., high–high or low–low) and incongruent (i.e., high–low or low–high) pressure contexts based on their relative intensities. It further examines how these distinct configurations affect two types of green innovation: strategic green innovation (StrGI) and substantive green innovation (SubGI). Using panel data from Chinese A-share listed firms between 2010 and 2022, the empirical results reveal that under congruent pressure contexts, the alignment of institutional and competitive pressures tends to suppress green innovation. In contrast, under incongruent contexts, the misalignment between the two pressures significantly promotes green innovation. Regarding innovation motivation, the high institutional–low competitive pressure context more significantly promotes StrGI, while the low institutional–high competitive pressure context has a more prominent effect on SubGI. In addition, this study also investigates the mediating roles of StrGI and SubGI on ESG performance. The findings provide theoretical support and policy implications for improving green transition policies and institutional frameworks, as well as promoting sustainable corporate development. Full article

Green innovation is a key driver of sustainable development, yet Chinese firms, as major innovators, still underperform in this area. While directors play a central role in corporate governance, the influence of their green backgrounds on green innovation remains underexplored. This study investigates how directors with green backgrounds impact corporate green innovation. We consider both the appointment and the power of green-background directors. At the same time, we use the manually collected data from China’s heavily polluting listed firms between 2014 and 2020. We also conduct regulatory effect and mediation effect analyses. We found the following: (1) Green-background directors significantly promote corporate green innovation. Appointing directors with environmental expertise enhances firms’ green innovation performance, and this positive effect strengthens as these directors’ power increases. (2) Mechanistically, green-background directors facilitate green innovation by raising firms’ environmental awareness and helping secure government environmental subsidies. (3) Contextual influences matter. Moderating effect tests reveal that the impact of green-background directors is strengthened in firms with diligent boards, firm size, and green investors, but weakened in regions with higher marketization levels. (4) Further analysis shows that green-background directors enhance both strategic and substantive green innovation while also ensuring the long-term continuity of green innovation efforts. Full article

Against the backdrop of increasing extreme weather events associated with global climate change, regulating carbon dioxide emissions, a primary contributor to atmospheric warming, has emerged as a pressing global challenge. Focusing on China as a representative case study of major developing economies, this research examines industrial carbon emission patterns during 2001–2022. Methodologically, it introduces an innovative analytical framework that integrates the Generalized Divisia Index Method (GDIM) with the Low Emissions Analysis Platform (LEAP) to both decompose industrial emission drivers and project future trajectories through 2040. Key findings reveal that:the following: (1) Carbon intensity in China’s industrial sector has been substantially decreasing under green technological advancements and policy interventions. (2) Industrial restructuring demonstrates constraining effects on carbon output, while productivity gains show untapped potential for emission abatement. Notably, the dual mechanisms of enhanced energy efficiency and cleaner energy transitions emerge as pivotal mitigation levers. (3) Scenario analyses indicate that coordinated policies addressing energy mix optimization, efficiency gains, and economic restructuring could facilitate achieving industrial carbon peaking before 2030. These results offer substantive insights for designing phased decarbonization roadmaps, while contributing empirical evidence to international climate policy discourse. The integrated methodology also presents a transferable analytical paradigm for emission studies in other industrializing economies. Full article

This study examines the degree of alignment between the actual environmental performance and the ESG disclosures of 365 listed financial institutions in Europe for the fiscal year 2024. Although ESG reporting has become a standard practice in the financial sector, there are still concerns that the quality of the disclosure may not accurately reflect substantive environmental action, which increases the risk of greenwashing. This study addresses this issue by incorporating both ESG disclosure indicators and green accounting metrics into a multi-criteria decision-making framework. This framework is supported by entropy-based weighting to assure objectivity in criterion importance, as outlined in the PROMETHEE II method. The Greenwashing Risk Index (GWI) is a groundbreaking innovation that quantifies the discrepancy between an institution’s classification based on ESG transparency and its performance in green accounting indicators, including environmental penalties, provisions, and resource usage. The results indicate that there is a substantial degree of variation in the performance of ESGs among institutions, with a significant portion of them exhibiting high disclosure scores but insufficient environmental substance. These discrepancies indicate that reputational sustainability may not be operationally sustained. The results have significant implications for regulatory supervision, sustainable finance policy, and ESG rating methodologies. The framework that has been proposed provides a replicable, evidence-based tool for identifying institutions that are at risk of greenwashing and facilitates the implementation of more accountable ESG evaluation practices in the financial sector. Full article

Faced with mounting pressure to achieve high-quality green transformation, manufacturing enterprises are increasingly scrutinized for greenwashing behaviors. This study develops a novel hybrid modeling framework that combines evolutionary game theory with the SEIR epidemic model to investigate the dynamic interactions between environmental regulation, media pressure, and green innovation behavior. The model captures how strategic decisions among boundedly rational actors evolve over time under dual external pressures. Simulation results show that stronger environmental regulatory intensity accelerates the adoption of substantive green innovation and concurrently reduces the media pressure associated with greenwashing. Moreover, while social media disclosure has a limited impact during the early stages of greenwashing information diffusion, its influence becomes significantly amplified once a critical dissemination threshold is surpassed, rapidly transforming latent information into widespread public concern. This amplification triggers significant public opinion pressure, which, in turn, incentivizes local governments to enforce stricter environmental policies. The findings reveal a synergistic governance mechanism where environmental regulation and media scrutiny jointly curb greenwashing and foster genuine corporate sustainability. Full article

Family businesses play a vital role in the global economy as an organizational form that has evolved over time. However, Chinese family firms generally suffer from insufficient investment in research and development. Based on panel data of Chinese listed family firms from 2008 to 2022, this study investigates the impact of government green subsidies on family firms’ green innovation, along with the heterogeneity of such effects under different scenarios. The results show that government green subsidies significantly promote both strategic and substantive green innovation. The moderating effect analysis reveals that economic policy uncertainty weakens the baseline effect. Further analysis confirms that the positive impact of green subsidies is achieved by alleviating firms’ R&D funding constraints. Heterogeneity analysis indicates that green subsidies have a stronger effect on non-heavily polluting firms; they promote substantive green innovation more effectively in firms with low managerial green cognition, and strategic green innovation in those with high cognition. Additionally, the effects vary across the firm life cycle: green subsidies enhance strategic green innovation during the growth and maturity stages, and substantive green innovation during the growth and decline stages. This study reveals the mechanisms through which government green subsidies affect green innovation in family firms and offers policy implications for promoting sustainable development in the family business sector. Full article

The Industry–Finance Collaboration Pilot (IFCP) integrates governmental green guidance with digital collaboration platforms to promote non-equity-based cooperation between industrial and financial sectors. Using a Difference-in-Differences (DID) approach and a sample of A-share listed industrial firms on the Shanghai and Shenzhen Stock Exchanges from 2011 to 2023, this study examines the IFCP’s impact on corporate green innovation (GI). Results show that the IFCP increases the number of green patent applications by 7.5% on average, indicating its effect in stimulating GI. This effect operates through two main mechanisms. First, under governmental green guidance, the IFCP encourages local green fiscal subsidies, increases green investor participation, improves environmental information disclosure, and lowers agency costs. Second, through digital finance empowerment, it mitigates information asymmetry and transaction costs in financial activities, thereby reducing credit costs and enhancing firms’ access to green credit. The effect of the IFCP on GI is more pronounced in regions with stricter environmental regulation, in pollution-intensive industries, and among firms with smaller asset sizes. Further analysis indicates that the IFCP primarily stimulates tactical, low-value GI driven by compliance or opportunistic motives, rather than promoting substantive, high-quality innovation. This study provides empirical evidence and policy insights into how governmental green guidance and digital finance empowerment can jointly promote green industrial development. Full article

Building an ecologically sustainable civilization and promoting green development not only make up the new motive power for China’s economic growth but are also an inevitable choice for achieving the “Dual Carbon” goal. This paper draws on the results of China’s provincial panels from 2012 to 2021 and constructs a thorough assessment index system for green finance that includes five dimensions: standardized system, disclosure of information, policy incentives, products and market, international cooperation. The influence mechanism of green finance on the realization of the “Dual Carbon” goal is revealed based on both quantity and caliber perspectives of green technological innovation, and the governments’ and markets’ regulating roles are analyzed. The study’s findings imply that (1) green finance facilitates the achievement of the “Dual Carbon” goal; (2) green finance helps to achieve the “Dual Carbon” goal by boosting green technology innovation and, compared with strategic green innovation, the effect of substantive green innovation is more significant; and (3) government support and increased marketization can bolster green finance’s contribution to accomplishing the goal. This study not only theoretically breaks through the limitations of the existing green finance evaluation index but also expands the single “quantity” channel of the impact of green finance on carbon emissions to a more comprehensive “quantity” and “caliber” channel, and also provides countermeasures and guidelines for how to better play the “synergy” of the government and the market in the practice of green finance. Full article

Breakthrough green innovation acts as a critical leverage point and a fundamental driver of the development of new productive forces. This study employs a sample of 108 cities along the Yangtze River Economic Belt from 2011 to 2021 to investigate the impact of digital infrastructure on urban breakthrough green innovation and its underlying mechanisms. The findings are as follows: (1) Digital infrastructure construction facilitates urban breakthrough green innovation, with a notably more substantial impact on strategic breakthrough green innovation. This result is validated through robustness and endogeneity tests. (2) Heterogeneity analysis indicates that the enhancement effect of digital infrastructure on breakthrough green innovation is more prominent in non-resource-based cities, cities with higher levels of marketisation, and those with weaker environmental regulations, with a particularly significant influence on substantive breakthrough green innovation. (3) Mechanism analysis reveals that upgrading industrial structures, optimising market resource allocation, and increasing public environmental awareness are critical mechanisms through which digital infrastructure strengthens urban breakthrough green innovation capacity. Additionally, as improvements occur in industrial structure, market resource allocation efficiency, and public environmental awareness, the impact of digital infrastructure on urban breakthrough green innovation capacity displays a nonlinear effect. Full article