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

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261589
Author(s):  
Kexian Zhang ◽  
Xiaoying Liu ◽  
Min Hong
Keyword(s):  
Technology Innovation ◽  
Green Technology ◽  
Political Connections ◽  
Social Benefits ◽  
Financing Constraints ◽  
Policy Uncertainty ◽  
Chinese Enterprises ◽  
Discretionary Effort ◽  
Shadow Banks ◽  
The Social

Firm’s effort on Green technology innovation (hereafter, called G-innovation) is affected by financing constraints, and firm will make a discretionary choice according to its own situation, to achieve the maximization of self-interests. Based on the data of Chinese micro enterprises, firstly, we empirically analyze firms’ decision-making towards G-innovation when faced with financing constraints. It supports the view that financing constraints can hinder enterprise technological innovation. And we also make an explanation that the social benefits of green technology innovation are greater than personal benefits, which makes enterprises tend to reduce green technology innovation when facing financing constraints. Then we examine firms’ heterogonous behaviors under different internal attributes and external environments. The results reveal that: First, firms are reluctant to pay more efforts to G-innovation when faced with increased financing constraints. Second, firms with different attributes exhibit heterogeneous G-innovation. Political connections will change firms’ willingness to innovate, while the structure of property rights and the pollution degree will not. Third, firms under different external environment also exhibit heterogeneous G-innovation. When economic policy uncertainty increases, firms’ willingness to innovate weakens. The development of shadow banks fail to improve firm’s willingness to innovate.

scholarly journals Do the Green Credit Guidelines Affect Corporate Green Technology Innovation? Empirical Research from China

2021 ◽  
Vol 18 (4) ◽  
pp. 1682
Author(s):  
Min Hong ◽  
Zhenghui Li ◽  
Benjamin Drakeford
Keyword(s):  
Technology Innovation ◽  
Green Technology ◽  
Debt Financing ◽  
Financing Constraints ◽  
Difference Model ◽  
Financing Constraint ◽  
Important Means ◽  
Regulatory Commission ◽  
The Impact ◽  
Innovation Policies

Green technology innovation is regarded as an important means to achieve sustainable development. Countries all over the world mainly implement green technology innovation policies from the aspects of environmental regulation and financing constraints. The effect of financing constraint policy on enterprise green technology innovation remains to be investigated. Based on the event of “green credit guidelines” issued by China Banking Regulatory Commission in 2012, this paper collects the panel data of China’s 2825 listed companies from 2007 to 2018, constructs a difference-in-difference model, and studies the impact of green credit guidelines on corporate green technology innovation and its mechanism. The empirical results show: First, green credit guidelines can promote corporate green technology innovation on the whole. Second, the mechanism of green credit on enterprise green technology innovation is identified. Green credit guidelines mainly limited green technology innovation through reducing debt financing, rather than through financing constraints. Third, the impact of green credit guidelines on green technology innovation is heterogeneous. Green credit guidelines have a significant effect on the green technology innovation of state-owned and large enterprises, but have no effect on the green technology innovation of non-state-owned and small ones.

scholarly journals Impact of Environmental Regulation Intensity on Green Technology Innovation: From the Perspective of Political and Business Connections

2021 ◽  
Vol 13 (9) ◽  
pp. 4862
Author(s):  
Yu-Hong Ai ◽  
Di-Yun Peng ◽  
Huan-Huan Xiong
Keyword(s):  
Environmental Regulation ◽  
Technology Innovation ◽  
Negative Impact ◽  
Early Stage ◽  
Green Technology ◽  
Political Connections ◽  
Long Run ◽  
Business Connections ◽  
The Impact ◽  
The Relationship

With heavy air pollution and the highest CO2 emissions in the world, China is in urgent need of technology innovation to improve the energy efficiency and control the pollution emission. This study empirically investigates the impact of environmental regulation intensity, political connections, and business connections on green technology innovation in China’s firms. The authors employ a panel data regression analysis on a dataset that comprises 884 observations for A-share listed companies from 2016 to 2019, owing to the availability of data. The results show: (1) Environmental regulation intensity (ERI) has a U-shaped effect on green technology innovation (GTI), which means GTI is inhibited by ERI in the early stage but gets promoted in the long run; (2) Political connections positively moderate the relationship between ERI and GTI mainly because of crowding-out effect and resource effect; (3) Business connections have a negative impact on the relationship between ERI and GTI, resulting from knowledge acquisition and lock-in; (4) Business connections have a greater moderating effect than political connections probably because political ties lack an effective mechanism to ensure long-term cooperation with the enterprises; (5) However, with regard to those firms in the non-heavily polluting industry, both connections moderate the relationship between ERI and GTI in an opposite direction to the main effect. The research results help policy makers formulate relevant policies, based on the impact of environmental regulation and social connections on green technology innovation.

scholarly journals The Impact of Cross-Shareholding Networks on Financing Constraints --Empirical Data from Manufacturing Companies

CONVERTER ◽  
2021 ◽  
pp. 408-415
Author(s):  
Qing Xia, Hua Li, Qiubai Sun
Keyword(s):  
Financing Constraints ◽  
Manufacturing Companies ◽  
Structural Holes ◽  
Chinese Enterprises ◽  
Financing Constraint ◽  
The Social ◽  
Network Method ◽  
The Cross ◽  
The Impact ◽  
The Relationship

As the financial markets have evolved, the cross-shareholding networks have been formed among Chinese enterprises with equity as the concluded relationship. Exploring the impact of the cross-shareholding networks on financing constraints has important implications for the decisions of manufacturing companies. This paper uses the social network method to characterize the cross-shareholding networks of manufacturing companies from 2007 to 2019 and explores the effects of the cross-shareholding networks on financing constraints. The innovation of this paper is to explore the relationship between the two. It is concluded that the centrality or structural holes richness of manufacturing companies in the cross-shareholding network is inversely related to the financing constraint. The higher the centrality or the richer the number of structural holes, the lower the level of financing constraints.

Environmental Regulation, Economic Policy Uncertainty, and Green Technology Innovation

2021 ◽  
Author(s):  
Xiaoqing Li ◽  
Zongyi Hu ◽  
Qing Zhang
Keyword(s):  
Economic Policy ◽  
Environmental Regulation ◽  
Technology Innovation ◽  
Negative Influence ◽  
Green Technology ◽  
Policy Uncertainty ◽  
Economic Policies ◽  
Green Innovation ◽  
Economic Policy Uncertainty ◽  
The Impact

Abstract Green technology innovation is imperative to sustainable and environmentally sound economic development and is currently facing increasingly serious environmental threats. However, existing research has overlooked the uncertainties in economic policies. Based on the logical relationship between environmental regulation, economic policy uncertainty, and green technology innovation, this study empirically analyzed the quantitative relationship among these three variables using the fixed-effect panel method and provincial panel data from 2000 to 2017 for 30 administrative regions of China. The results show that environmental regulation is positively correlated with green innovation, whereas economic policy uncertainty has a negative influence on green innovation, thereby regulating the relationship between the remaining two factors. Moreover, considerable regional heterogeneity exists in these causal influences, i.e., environmental regulation promotes green innovation in the eastern and middle regions but not significantly in the west. The uncertainty actively moderates the impact of environmental regulation on green innovation in all regions with an adjustment coefficient of approximately 0.8; however, it inhibits green innovation in different degrees, especially in the eastern and middle regions. Based on empirical results, we conclude that strict and appropriate environmental regulations are necessary and effective in China to encourage green technology innovation, especially in regions with uncertain economic policies.

scholarly journals Social Trust and Green Technology Innovation: Evidence from Listed Firms in China

2021 ◽  
Vol 13 (9) ◽  
pp. 4828
Author(s):  
Yaru Yang ◽  
Desheng Liu ◽  
Luxiu Zhang ◽  
Yingkai Yin
Keyword(s):  
Global Economy ◽  
Technology Innovation ◽  
Social Trust ◽  
Positive Impact ◽  
Green Technology ◽  
Sustainable Growth ◽  
Least Square ◽  
Policy Uncertainty ◽  
Intellectual Property Rights Protection ◽  
Variable Approach

Green Technology innovation intends to enable the advancement of technologies toward the goals of human health, natural resource sustainability and social equity. Green technology innovation has become an important driving force for the sustainable growth of the global economy. In this study, building upon the theories on informal institutions, we empirically investigate the effects of social trust on green technology innovation. Using a sample of companies listed in A-share markets in China from 2012 to 2017, we find that social trust has a significant positive impact on the performance of green technology innovation. We employ an instrumental variable approach through two-stage-least square estimator, and report consistent results. Further heterogeneity analysis finds that with higher levels of policy uncertainty and lower levels of intellectual property rights protection, the effect of social trust on firms’ green technology innovation is more significant. Further, the effect of social trust on firms’ green technology of non-SOEs innovation is larger than SOEs. In addition, the positive effect of social trust on green technology innovation in firms is an effective supplement for formal systems to promote green technology innovation in said firms, which provides a new theoretical reference for promoting firms’ green technology innovation and achieving high-quality development.

scholarly journals Does the Low-Carbon City Pilot Policy Promote Green Technology Innovation? Based on Green Patent Data of Chinese A-Share Listed Companies

2021 ◽  
Vol 18 (7) ◽  
pp. 3695
Author(s):  
Jintao Ma ◽  
Qiuguang Hu ◽  
Weiteng Shen ◽  
Xinyi Wei
Keyword(s):  
Technological Innovation ◽  
Technology Innovation ◽  
Objective Assessment ◽  
Green Technology ◽  
Low Carbon ◽  
Corporate Financing ◽  
Multiple Dimensions ◽  
Low Carbon City ◽  
The Impact ◽  
A Share

To cope with climate change and achieve sustainable development, low-carbon city pilot policies have been implemented. An objective assessment of the performance of these policies facilitates not only the implementation of relevant work in pilot areas, but also the further promotion of these policies. This study uses A-share listed enterprises from 2005 to 2019 and creates a multi-period difference-in-differences model to explore the impact of low-carbon city pilot policies on corporate green technology innovation from multiple dimensions. Results show that (1) low-carbon city pilot policies stimulates the green technological innovation of enterprises as manifested in their application of green invention patents; (2) the introduction of pilot policies is highly conducive to green technological innovation in eastern cities and enterprises in high-carbon emission industries; and (3) tax incentives and government subsidies are important fiscal and taxation tools that play the role of pilot policies in low-carbon cities. By alleviating corporate financing constraints, these policies effectively promote the green technological innovation of enterprises. This study expands the research on the performance of low-carbon city pilot policies and provides data support for a follow-up implementation and promotion of policies from the micro perspective at the enterprise level.

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