Discretionary Effort on Green Technology Innovation: How Chinese Enterprises Act when Facing Financing Constraints

Zhang, Kexian; Liu, Xiaoying; Min, Hong Jung

doi:10.1371/journal.pone.0261589

Cited by 9 publications

(8 citation statements)

References 63 publications

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“…Specifically, from an economic perspective, the green collaborative innovation of enterprises and financial institutions mainly involves the interest game of the two parties. In addition, green innovation has a long period for profit realization and a higher social income than personal income [26]. Therefore, the government should conduct environmental supervision to achieve the ideal stable state of game between enterprises and financial institutions.…”

Section: Basis Of the Evolutionary Game Modelmentioning

confidence: 99%

“…In view of this, the premise of the formulation of ER by the government is to clarify the main participants of collaborative innovation and their interest relationships. Enterprises are the main body of green collaborative innovation [23], but the cycle of green innovation is long, the risk is great, and the social benefit is greater than the personal benefit [25][26], so the green innovation of enterprises often faces high financing constraints [27]. At this time, enterprises will reduce green innovation to maximize their own interests.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Environmental Regulations on Green Collaborative Innovation in China: An Analysis Based on an Evolutionary Game Perspective

Meng¹,

Zhang²

2022

Pol. J. Environ. Stud.

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Reasonable environmental regulation is beneficial to promote green innovation and sustainable development, but the current lack of research of environmental regulation and collaborative innovation intention. Based on this, this paper constructs an evolutionary game model of green collaborative innovation between enterprises and financial institutions from the perspective of enterprise information disclosure and financing constraints, and explores the specific effects of different types of environmental regulation through case analysis and numerical simulation. Case studies show that the cooperation between enterprises and financial institutions is conducive to the realization of green innovation, but there is still no effective restraint mechanism. The numerical simulation results show that the combination of market-incentive and command-controlled environmental regulation can better stimulate the willingness of collaborative innovation, but the former has more significant incentive effect. Further, for enterprises, the government's cost subsidy or revenue incentive coefficient positively affects the cooperative innovation willingness of both parties. Similarly, the improvement of the cost subsidy or income incentive or even punishment coefficient by the government to financial institutions also has the same effect; increasing the cost subsidy coefficient is more significant, and enterprises are more sensitive to this. This paper provides reference for Chinese government to make reasonable environmental policy.

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Section: Basis Of the Evolutionary Game Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Impact of Environmental Regulations on Green Collaborative Innovation in China: An Analysis Based on an Evolutionary Game Perspective

Meng¹,

Zhang²

2022

Pol. J. Environ. Stud.

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“…Another critical factor to GE practices is technological advancements (C21). While the concept of GE practices has been debated for many years, locating suitable technology to assist with GE practices is still not properly resolved and immature (Zhang et al, 2021). Moreover, if some technology is found to be efficient in ensuring GE practices, it is expensive.…”

Section: Degree Of Prominencementioning

confidence: 99%

Causality analytics among key factors for green economy practices: Implications for sustainable development goals

Karuppiah

Sankaranarayanan

Ali

et al. 2022

Front. Environ. Sci.

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The green economy (GE) concept is believed to have the ability to turn natural resources into wealth in a sustainable manner. As a result, the GE concept is viewed as a magic key to the attainment of sustainable development goals (SDGs). This study aims to identify and evaluate the critical factors in GE practices. Based on literature review and industrial interaction, five dimensions of critical factors, namely, economic and market, technical and R&D, policy and regulation, networks and social capital, and public perceptions, with a total of 20 critical factors were identified and evaluated. The Fermatean fuzzy system (FFS)-based decision-making trial and evaluation laboratory (DEMATEL) technique has been used to evaluate the causality among the critical factors. Results reveal that win-win anticipations, the commitment of key stakeholders, the domestic market structure, cost of alternatives, and financial assistance are the top five critical factors in GE practices. Three critical factors are classified under the cause category, and the remaining 17 critical factors come under the effect category. This study contributes to the literature on GE by revealing the causal interrelationship among the critical factors. This will guide industrial management to take appropriate actions in the implementation of GE practices.

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“…Wang et al [12] further observed how formal financing constraints hinder the growth of enterprises in China. As for firm innovation, especially in the face of high financing constraints, firms' investment in green technology innovation was greatly reduced in China [19,20].…”

Section: Related Literature and Development Of Hypotheses 221 The Eff...mentioning

confidence: 99%

“…The effects of financing constraints in emerging markets have been widely investigated by scholars [11,12]. Regarding the consequences of financing constraints, several factors are considered such as firm investment [13,14], firm size [15], and firm performance; including firm growth [12,16], firm productivity [8,17,18], and firm innovation [19,20]. The literature has expanded our understanding of diverse impacts of financing constraints on firms in emerging economies.…”

Section: Introductionmentioning

confidence: 99%

Financing Constraints and Corporate Value in China: The Moderating Role of Multinationality and Ownership Type

2022

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Drawing on institutional theory and agency theory, this study examines the relationship between financing constraints and corporate value in China. In addition, we provide solutions for negative effects of financing constraints on corporate value in China. Chinese firms tend to utilize costly informal institutions to gain legitimacy and necessary resources from external stakeholders. This can lead to Chinese firms’ assuming higher financing transaction costs, negatively influencing corporate value. The multinational strategy of Chinese firms can further increase the financial burden of the company, and agency problems of state-owned enterprises (SOEs) can negatively affect the enthusiasm of managers, exacerbating the restraining effects of financing constraints on corporate value. We empirically analyze the non-financial companies listed on the Chinese stock market from 2011 to 2020 by using the methods of fixed effects and dynamic regression, heterogeneity analysis, and instrumental variables. The results show that financing constraints significantly inhibit corporate value. Accounting for the impact of differing degrees of multinationality and different types of ownership in enterprises, we empirically present the positive moderating effects of multinationality and ownership type in reducing corporate value in circumstances of financing constraints. Finally, we suggest ways for Chinese firms to overcome the negative effects of financing constraints on corporate value.

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Discretionary Effort on Green Technology Innovation: How Chinese Enterprises Act when Facing Financing Constraints

Cited by 9 publications

References 63 publications

The Impact of Environmental Regulations on Green Collaborative Innovation in China: An Analysis Based on an Evolutionary Game Perspective

The Impact of Environmental Regulations on Green Collaborative Innovation in China: An Analysis Based on an Evolutionary Game Perspective

Causality analytics among key factors for green economy practices: Implications for sustainable development goals

Financing Constraints and Corporate Value in China: The Moderating Role of Multinationality and Ownership Type

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