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First‐mover advantages in green innovation—Opportunities and threats for financial performance: A longitudinal analysis

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  • Wojciech Przychodzen
  • Dante I. Leyva‐de la Hiz
  • Justyna Przychodzen

Abstract

Although the analysis of the relation between green innovative activism and financial performance is a popular topic, the existing literature has rarely addressed the tangible benefits that companies may enjoy if they engage in green innovations more than their competitors. This study tries to fill the above gap on the basis of an empirical analysis of a panel data set of the Standard & Poor's 500 companies over the years 1999–2016. We find that high green innovative activism, measured by patent data, only harms current financial performance when not carried out in conjunction with other types of innovative activism. In addition, we find that being the most active in green innovation in absolute terms results in significant positive lagged gains in stock market valuations. However, too much concentration on green innovation relative to other types of innovative activism has a negative influence on both accounting and stock market performance.

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  • Wojciech Przychodzen & Dante I. Leyva‐de la Hiz & Justyna Przychodzen, 2020. "First‐mover advantages in green innovation—Opportunities and threats for financial performance: A longitudinal analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 339-357, January.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:1:p:339-357
    DOI: 10.1002/csr.1809
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    2. Ewa Mazur-Wierzbicka, 2022. "Measurement of Progress in the Environmental Area: Poland against the Countries of the European Union," IJERPH, MDPI, vol. 20(1), pages 1-27, December.
    3. Benkraiem, Ramzi & Dubocage, Emmanuelle & Lelong, Yann & Shuwaikh, Fatima, 2023. "The effects of environmental performance and green innovation on corporate venture capital," Ecological Economics, Elsevier, vol. 210(C).
    4. Xiaojian Xiang & Chuanjiang Liu & Mian Yang & Xiaomeng Zhao, 2020. "Confession or justification: The effects of environmental disclosure on corporate green innovation in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2735-2750, November.
    5. Jo Crotty & Diane Holt, 2021. "Towards a typology of strategic corporate social responsibility through camouflage and courtship analogies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 980-991, May.
    6. Emrah Koçak & Umit Bulut & Angeliki N. Menegaki, 2022. "The resilience of green firms in the twirl of COVID‐19: Evidence from S&P500 Carbon Efficiency Index with a Fourier approach," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 32-45, January.
    7. Lingli Qing & Dongphil Chun & Abd Alwahed Dagestani & Peng Li, 2022. "Does Proactive Green Technology Innovation Improve Financial Performance? Evidence from Listed Companies with Semiconductor Concepts Stock in China," Sustainability, MDPI, vol. 14(8), pages 1-20, April.
    8. Liu, Ting & Quan, Lei & Gao, Xing, 2023. "Social dishonesty and corporate green innovation," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 967-985.

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