articleCorporate Social Responsibility and Environmental ManagementMay 20, 2022Closed access

Does better environmental, social, and governance induce better corporate green innovation: The mediating role of financing constraints

YZYuming ZhaiZCZhenghuan CaiHLHan LinMYMing YuanYMYe Mao

Shanghai Institute of Technology · Nanjing Audit University · +2 more institutions

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Abstract

Abstract Green innovation is a key way for firms to establish competitive advantage and contribute to sustainable development, but it often suffers from financing constraints. In this regard, environmental, social, and governance (ESG) practices allow firms to have a wider investor base, face lower risk, and generate positive market reactions, ultimately leading to a lower cost of capital, which may potentially alleviate financing constraints and provide strong motivation for green innovation. Combining stakeholder theory with the resource‐based view (RBV), this study investigated how ESG substantially affects corporate green innovation. Based on a zero‐inflated Poisson regression analysis of 1577 listed…

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235
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FWCI
30.04
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100%
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6

Topics & keywords

Topics
Keywords
  • Business
  • Corporate governance
  • Stakeholder
  • Green innovation
  • Competitive advantage
  • Industrial organization
  • Sustainable development
  • Finance
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