How environmental regulations affect corporate innovation? The coupling mechanism of mandatory rules and voluntary management

Jiang, Zhenyu; Wang, Zongjun; Lan, Xiao

doi:10.1016/j.techsoc.2021.101575

Cited by 92 publications

(55 citation statements)

References 54 publications

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“…The existing literature includes a significant amount of research on the motivation of corporate technological innovation. Focusing on the external influencing factors of corporate technological innovation, such as financial policy, industrial policy and industry characteristics [ 2 , 3 , 4 ], and internal influencing factors, such as corporate governance structure, managers’ shareholding ratio, executive incentive, corporation size, and nature of equity [ 5 , 6 , 7 ], a great deal of results have been achieved. However, most of the existing literature has not considered the risks faced by corporations and environmental uncertainty.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Chen

Shu

Wang

et al. 2021

IJERPH

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The paper analyzes the effect of environmental uncertainty on corporate technological innovation from the perspective of an innovation value chain under the institutional background of China. This paper not only discusses the intermediary effect of agency problems on environmental uncertainty and corporate technological innovation but also deeply explores the influence of information transparency, government subsidies, and other mechanisms to alleviate agency problems on environmental uncertainty and corporate technological innovation. We use the data of listed companies in China from 2008 to 2019 as the research sample, and the results show that, in general, environmental uncertainty has a negative effect on both input and output of technological innovation, and the negative effect can last for two years. Further research shows that the agency problem has an intermediary effect on the environmental uncertainty and corporate technology innovation, and the environmental uncertainty aggravates the agency problem, which hinders the input and output of corporate technology innovation. As an important mechanism to alleviate the agency problems, information transparency and government subsidies can effectively alleviate the agency conflict, thus reducing the inhibition of environmental uncertainty on the input and output of technological innovation. Our findings contribute to the discussion of driving factors for technological innovation in the context of China’s system. Our results provide useful insights into the link between environmental uncertainty and corporate innovation for economic academics and practitioners alike.

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Section: Introductionmentioning

confidence: 99%

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Chen

Shu

Wang

et al. 2021

IJERPH

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show abstract

“…(3) Replace explanatory variables. Some experts distinguish between command-and-control and market incentives (Zhu et al 2021;Jiang et al 2021;Sun et al 2021;Wang et al 2018a). The comprehensive index of environmental regulation measured by the removal rate of five pollutants is a proxy variable for command-and-control environmental regulation.…”

Section: Robustness Testmentioning

confidence: 99%

Environmental regulation and manufacturing carbon emissions in China: a new perspective on local government competition

Liu

Xin

2022

Environ Sci Pollut Res

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Environmental regulation is a crucial way to achieve manufacturing green transformation. However, few studies have explored the spatial spillover effects and regional boundaries of environmental regulation on manufacturing carbon emissions from the perspective of local government competition. Based on the manufacturing panel data of 30 provinces in China from 2007 to 2019, this paper uses the spatial Durbin model to examine the impact mechanisms, spatial spillover effects, regional boundaries and industry heterogeneity of environmental regulation, and local government competition on manufacturing carbon emissions. The results show that (1) environmental regulation suppresses local manufacturing carbon emissions, local government competition increases local manufacturing carbon emissions, but the interaction indicates that local governments tend to top-to-top competition under the constraints of environmental regulation. (2) The spatial spillover effect of environmental regulation has regional boundaries. The regional boundary with a positive spillover effect is 600 km, and the regional boundary with a negative spillover effect is 1600 km. (3) Environmental regulation and local government competition have spatial heterogeneity in the carbon reduction effects of seven-type manufacturing industries. These findings suggest concrete evidence for developing policies for further encouraging green development in manufacturing.

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“…Chen [ 13 ] believe that for enterprises, both recycling and carbon emission capacity regulation will lead to a decline in profits, showing a negative effect. Jiang [ 14 ] found that industry environmental regulation has a negative impact on enterprise innovation performance. Tang [ 15 ] studied that environmental control regulations have had an adverse impact on small enterprises, state-owned enterprises, and enterprises in western and eastern China.…”

Section: Literature Reviewmentioning

confidence: 99%

Research on Environmental Regulation and Green Total Factor Productivity in Yangtze River Delta: From the Perspective of Financial Development

Tang

Tenkorang

et al. 2021

IJERPH

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This paper employs the global Malmquist Luenberger (GML) index and the System Generalized method of moments (GMM) estimation method to investigate the influence of both environmental regulation and financial development on green total factor productivity in 41 cities of the Yangtze River Delta (YRD) in China from 2003–2019. We select the relevant input-output data to measure the green total factor productivity (GTFP) and its decomposition index including undesirable output. The results show that the GTFP and its decomposition index in the YRD have a slow fluctuating upward trend. The YRD mainly depends on improving the level of technological progress and environmental governance to promote the improvement of regional economic green development level. The empirical research results show that there is an inverted U relationship between environmental regulation and GTFP in the YRD, too strict environmental regulation will inhibit the growth of green total factor productivity. By adding control variables, the inflection point of environmental regulation is 0.5034, which is lower than that without control variables. There is a strong interaction and superposition effect between financial development and environmental regulation, which is closely related to the established financial cooperation mechanism, perfect financial system arrangement and cross-regional financial cooperation platform in the YRD. Government intervention should be reduced, the introduction of foreign capital should be controlled appropriately, foreign capital should be guided to green industries, and the use efficiency of foreign capital should be improved. This paper holds that we should pay attention to the strength of environmental regulation, prevent overcorrection, increase the guidance of credit funds, deepen the reform of the financial system, appropriately intervene in the market by the government, strengthen the guidance of foreign capital, and promote the development and transformation of the green economy in the YRD region with the help of several policies.

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How environmental regulations affect corporate innovation? The coupling mechanism of mandatory rules and voluntary management

Cited by 92 publications

References 54 publications

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Environmental regulation and manufacturing carbon emissions in China: a new perspective on local government competition

Research on Environmental Regulation and Green Total Factor Productivity in Yangtze River Delta: From the Perspective of Financial Development

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