Does green technology innovation benefit corporate financial performance? Investigating the moderating effect of media coverage

The premise of being “green” is often perceived as socially beneficial, yet its financial implications remain uncertain. To address this gap, we examine the complex relationship between green technology innovations (GTIs) and corporate financial performance (CFP) in the semiconductor industry. Our research revealed a crucial distinction between the two types of GTIs: proactive and reactive. Proactive GTIs have emerged as strong drivers of positive impact on CFP, positioning themselves as attractive and financially beneficial investments. Conversely, reactive GTIs negatively influence a firm's financial performance, raising questions about its long‐term viability. Additionally, our research goes beyond this core relationship to explore the moderating influence of media coverage on GTI–CFP dynamics by focusing on both print and new media. Interestingly, print media amplifies the favorable connection between GTIs and CFP, suggesting its role in shaping perceptions and stakeholder engagement. Surprisingly, new media weakens this connection, highlighting the complex interplay between digital platforms and CFP. Moreover, our study highlights the fact that the impact of GTIs and media coverage on CFP is particularly pronounced among smaller companies, thereby offering strategic insights for firms of varying sizes. These nuanced findings contribute substantially to our understanding of GTI adoption and the role of media in informal environmental regulation, ultimately providing valuable guidance for semiconductor companies and investors navigating the “green” landscape.