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Can public surveillance promote corporate environmental innovation? The mediating role of environmental law enforcement

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  • Zhongju Liao
  • Chen Weng
  • Chen Shen

Abstract

With the increase in public environmental awareness, firms are continuously being required to fulfill environmental responsibilities. Based on stakeholder theory and institutional theory, this study examines the impact of public surveillance on corporate environmental innovation and the mediating role of environmental law enforcement. We selected 30 provinces in China as the research sample from 2011 to 2015. Multiple regression analysis was used to analyze the data by Stata software. We found that public surveillance had a significant positive promoting effect on corporate radical eco‐innovation, but had no significant effect on incremental eco‐innovation; environmental law enforcement had a significant positive promoting effect on both radical and incremental eco‐innovations. In addition, public surveillance was conducive to enhancing environmental law enforcement, which in turn promoted corporate radical eco‐innovation.

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  • Zhongju Liao & Chen Weng & Chen Shen, 2020. "Can public surveillance promote corporate environmental innovation? The mediating role of environmental law enforcement," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1519-1527, November.
    • Handle: RePEc:wly:sustdv:v:28:y:2020:i:6:p:1519-1527
    DOI: 10.1002/sd.2101
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    8. Liao, Zhongju & Chen, Jie & Weng, Chen & Zhu, Cunbin, 2023. "The effects of external supervision on firm-level environmental innovation in China: Are they substantive or strategic?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 267-277.
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    12. Li Dong & Xin Zhang & Jinlong Chen, 2024. "Does Investor Sentiment Drive Corporate Green Innovation: Evidence from China," Sustainability, MDPI, vol. 16(8), pages 1-20, April.
    13. Soesilo, Nining Indroyono & Alfarizi, Muhammad, 2024. "Psycho-social conditions of urban communities in the complexity of waste management: Are awareness and waste banks the main solution?," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
    14. Fang Huang & Chong Wu, 2024. "Impact of Digital Economy on Carbon Emissions and Its Mechanism: Evidence from China," Sustainability, MDPI, vol. 16(20), pages 1-16, October.
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    18. Chunling Yu & Toru Morotomi & Qunwei Wang, 2023. "Heterogeneous Effects of Public Procurement on Environmental Innovation, Evidence from European Companies," Sustainability, MDPI, vol. 15(19), pages 1-23, September.

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