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Innovation-driven development and corporate green innovation

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  • Kong, Dongmin
  • Xiang, Genben
  • Zhu, Ling

Abstract

This study investigates the impact of innovation-driven development on corporate green innovation. Leveraging China's national innovation-driven pilot policy as a quasi-natural experiment, we employ a difference-in-differences (DID) approach to demonstrate that this policy significantly boosts corporate green innovation. Our findings reveal three key mechanisms through which innovation-driven development fosters green innovation: stimulating R&D investment, enhancing green innovation efficiency, and promoting corporate social responsibility. Heterogeneity analysis indicates that the policy's effects are more pronounced for firms with higher analyst attention, stricter financing constraints, and more stringent environmental regulations.

Suggested Citation

  • Kong, Dongmin & Xiang, Genben & Zhu, Ling, 2024. "Innovation-driven development and corporate green innovation," Finance Research Letters, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:finlet:v:68:y:2024:i:c:s1544612324010389
    DOI: 10.1016/j.frl.2024.106008
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