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Local Attention to Environment and Green Innovation: Evidence from Listed Manufacturing Companies in 120 Cities in China

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  • Jianling Xu
  • Jiao Hong
  • Zhiyuan Zhou

Abstract

This paper conducts a textual analysis of the reports on the work of local governments to measure local governments’ attention to environmental governance and study the impact of these concerns on corporate green innovation. We find evidence that local governments’ attention to the environment will significantly improve corporate green innovation, and the government can promote the green technology innovation of enterprises by providing support and strengthening supervision. Further research shows that the uniformity between the central and local governments and environmental attention pressure from higher-level government reinforce the influence of local environmental attention on corporate green innovation.

Suggested Citation

  • Jianling Xu & Jiao Hong & Zhiyuan Zhou, 2023. "Local Attention to Environment and Green Innovation: Evidence from Listed Manufacturing Companies in 120 Cities in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(4), pages 1062-1073, March.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:4:p:1062-1073
    DOI: 10.1080/1540496X.2022.2128753
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    Cited by:

    1. Chengyun Liu & Ziting Zhou & Kun Su & Ke Liu & Hui An, 2024. "Water risk and financial analysts' information environment: Empirical evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1265-1304, February.
    2. Zhao, Shikuan & Abbassi, Wajih & Hunjra, Ahmed Imran & Zhang, Han, 2024. "How do government R&D subsidies affect corporate green innovation choices? Perspectives from strategic and substantive innovation," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1378-1396.
    3. Wang, Hongxia & Deng, Wenyueyang & Zhang, Zenglian & Li, Ming, 2024. "Does government's environmental attention improve urban energy efficiency?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    4. Lin, Boqiang & Xie, Yongjing, 2024. "How feed-in-tariff subsidies affect renewable energy investments in China? New evidence from firm-level data," Energy, Elsevier, vol. 294(C).
    5. Liu, Xiaoqian & Cifuentes-Faura, Javier & Zhao, Shikuan & Wang, Long, 2024. "The impact of government environmental attention on firms’ ESG performance: Evidence from China," Research in International Business and Finance, Elsevier, vol. 67(PA).
    6. Boqiang Lin & Yongjing Xie, 2024. "Impacts of digital transformation on corporate green technology innovation: Do board characteristics play a role?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1741-1755, May.

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