IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v93y2024ics1057521924000681.html
   My bibliography  Save this article

The ripple effect of environmental shareholder activism and corporate green innovation: Evidence from Chinese listed companies

Author

Listed:
  • Sun, Yuan
  • Wen, YouYun
  • Jiang, Senyang
  • Zhang, Haoxiang

Abstract

This study examines the effect of environmental shareholder activism on corporate green innovation and the underlying mechanism. Our results show that environmental shareholder activism mitigates time-based agency conflict between shareholders and managers and alleviates managerial myopia, consequently leading to an increase of corporate green innovation. Specifically, we find that the positive effect of environmental shareholder activism on green innovation is more pronounced when managerial myopia is more severe, shareholders are willing to monitor corporate governance, and managers are able to learn from investors through high-quality direct interactions. Furthermore, in terms of influencing mechanism, we find that environmental shareholder activism can produce a ripple effect, causing more site visits, news media coverages and internet searches, and these attention pressures can further motive managerial engagement in more green innovation. We also find that firms that increase green innovation following environmental shareholder activism achieve a higher valuation, suggesting that investors make favorable response to firms' sustainable development.

Suggested Citation

  • Sun, Yuan & Wen, YouYun & Jiang, Senyang & Zhang, Haoxiang, 2024. "The ripple effect of environmental shareholder activism and corporate green innovation: Evidence from Chinese listed companies," International Review of Financial Analysis, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000681
    DOI: 10.1016/j.irfa.2024.103136
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521924000681
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2024.103136?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000681. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.