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Can social trust foster green innovation?

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Listed:
  • Liu, Deyu
  • Wang, Kefan
  • Liu, Jialin

Abstract

This paper analyzes the impact of social trust (ST) on corporate green innovation (CGI) using data from Chinese A-share listed companies from 2012 to 2021. ST is found to contribute to CGI enhancement. In addition, financing constraints and agency costs are important intrinsic mechanisms, and ST promotes CGI by alleviating financing constraints and reducing agency costs. Further analysis reveals that the promotion of CGI by ST is affected by the heterogeneity of the degree of market competition and that there is a complementary relationship between ST and the formal institution.

Suggested Citation

  • Liu, Deyu & Wang, Kefan & Liu, Jialin, 2024. "Can social trust foster green innovation?," Finance Research Letters, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324006743
    DOI: 10.1016/j.frl.2024.105644
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    References listed on IDEAS

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    1. Guangliang Wang & Boang Tang & Linyao Li, 2024. "Are Good Deeds Rewarded?—The Impact of Traditional Morality and Modern Responsibility on Green Innovation," Sustainability, MDPI, vol. 16(22), pages 1-19, November.

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    More about this item

    Keywords

    Social trust; Informal institutions; Green innovation; Financing constraints; Agency costs;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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