scholarly journals Environmental Protection Investment and Enterprise Innovation: Evidence from Chinese Listed Companies

2021 ◽  
Author(s):  
Xinfeng Jiang ◽  
Ahsan Akbar ◽  
Eglantina Hysa ◽  
Minhas Akbar
Keyword(s):  
Environmental Protection ◽  
Crowding Out ◽  
Chinese Enterprises ◽  
Corporate Managers ◽  
Listed Firms ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
Chinese Listed Companies ◽  
Enterprise Innovation ◽  
The Government

Abstract China has emerged as the world’s second-largest economy due to its rapid industrial expansion and phenomenal economic growth in recent decades. Though, this exponential economic turnaround has been fueled by widespread energy consumption, making China among the largest pollutant emitters in the world. Chinese enterprises have come under greater scrutiny and the government has mandated Chinese companies to undertake environmental protection investment. However, little is known that how these mandatory environmental investments affect Chinese firms’ ability to undertake R&D expenditures. This study employs data of China’s A-share listed firms during 2008-2016 to examine the nexus between environmental protection investment and corporate innovation. Our findings conjecture the crowding-out effects of environmental investments on enterprise innovation-related expenditures. Furthermore, additional empirical testing reveals that R&D undertakings of state-owned and politically connected firms are not affected by environmental investments. Likewise, corporate innovation activities are not negatively influenced by environmental investments in polluting industries. The study findings offer fresh insights to regulators, corporate managers, and stakeholders. Our results are robust to alternate econometric specifications and alternate variable specifications.

scholarly journals Be Green to Be Innovative: The Role of Government Subsidies

2021 ◽  
Vol 9 ◽  
Author(s):  
Yingbo Xu ◽  
Wei Liu ◽  
Ruihui Pu ◽  
Yonghui Xu
Keyword(s):  
Environmental Protection ◽  
Industrial Firms ◽  
Role Of Government ◽  
Market Strategy ◽  
Institutional Legitimacy ◽  
Government Subsidies ◽  
Environmental Investment ◽  
Innovation Activities ◽  
Corporate Innovation

Corporate environmental investment has long been recognized as a non-market strategy that helps secure both economic and social benefits. However, we know much less about how environmental investment affects corporate innovation. We argue that investment in environmental protection is an important source of institutional legitimacy for firms to secure government resources, thus providing financial support for corporate innovation activities. Using a sample of Chinese industrial firms, we find that firms investing more in environmental protection can receive more government subsidies and then have better innovation performance. This study emphasizes the mechanism of government resources, which enriches our understanding of the effect of environmental investment on corporate innovation.

scholarly journals Financial constraints, government subsidies, and corporate innovation

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259642
Author(s):  
Qi Li ◽  
Jiaojiao Wang ◽  
Guohua Cao ◽  
Jing Zhang
Keyword(s):  
Financial Constraints ◽  
Mediation Effect ◽  
Government Subsidies ◽  
Panel Model ◽  
Corporate Innovation ◽  
Chinese Listed Companies ◽  
Different Types ◽  
The Government ◽  
Effect Test ◽  
Structural Innovation

To investigate the relationships between financial constraints, government subsidies, and corporate innovation, a semi-logarithmic fixed-effect panel model and mediation effect test were applied, based on the data of Chinese listed companies from 2007 to 2017. We find that (1) financial constraints suppress corporate innovation. (2) Government subsidies are targeted at bailing out firms facing financial constraints. (3) Government subsidies promote corporate innovation (4) Government subsidies partially offset the suppression of financial constraints on innovation. We contribute to the fields of public finance, corporate finance, and corporate innovation by: (1) justifying the government subsidies target strategy as a bailout of corporate financial constraints, (2) verifying the corporate-innovation promotion of government subsidies, thus justifying the efficiency of government subsidies, and (3) showing that different types of innovation benefit differently from subsidies, thus justifying subsidies as a structural innovation engine.

Can we-media information disclosure drive listed companies' innovation?—From the perspective of financing constraints

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongbin Huang ◽  
Yani Sun ◽  
Qingling Chu
Keyword(s):  
Influencing Factors ◽  
Information Disclosure ◽  
Information Source ◽  
Listed Companies ◽  
Least Square ◽  
Financing Constraints ◽  
Content Type ◽  
Innovation Activities ◽  
Enterprise Innovation ◽  
The Government

PurposeThe purpose of this paper is to investigate to what extent the amount, information source and the content of the microblog information disclosure of listed companies could impact on innovation from the perspective of financing constraints.Design/methodology/approachThe propensity score matching (PSM) and two-stage least square (2SLS) are used in estimations to deal with the endogeneity problem.FindingsEvidence shows that the amount of we-media information disclosure significantly drives the innovation of enterprises. The mechanism is that we-media information disclosure drives the innovation by easing the financing constraints and bringing funds to the R&D activities. Further research shows that only the original information can drive the innovation. In particular, the R&D information promotes the R&D input and innovation output more significantly.Practical implicationsThe conclusion of this paper provides a reference for the listed companies to drive innovation with the help of we-media information disclosure, a new solution for the small and medium-sized listed companies in China which have difficulty in carrying out innovation activities due to financing constrains and also provides useful practical enlightenment for the government and the capital market regulatory authorities to issue relevant policies to regulate we-media information disclosure.Originality/valueThis paper introduces a new information disclosure channel--we-media into the research on influencing factors of innovation and discusses the influence of the amount, different sources and disclosure contents from we-media on enterprise innovation, which enriches the existing research on enterprise innovation influencing factors, providing a new perspective for driving enterprises to innovate.

scholarly journals Whether the Innovation Policy Will Really Improve Enterprise’s Innovation Performance— Mediating Role of Ambidextrous Learning

2018 ◽  
Vol 11 (9) ◽  
pp. 96
Author(s):  
Wang Dongling ◽  
Kelvin C.K. Lam
Keyword(s):  
Innovation Policy ◽  
Innovation Performance ◽  
High Tech ◽  
Mediating Role ◽  
Innovation Activities ◽  
Enterprise Innovation ◽  
The Government ◽  
The Impact ◽  
Government Innovation

As the scope embodiment of public policy in specific fields, the government innovation policy is essentially a system arrangement and rule design and it plays an external guidance and incentive effect on the enterprises’ innovation activities. Whether the innovation policy will really promote the improvement of enterprises’ innovation performance and how it is realized have not reached the conclusion among theorists. As such the aim of this research is to test the relationships between innovation policy and enterprises’ innovation performance with the aim of contributing to help the government adjust policies and improve the innovation performance of enterprises. Based on the data of high-tech enterprises in Shandong Province in 2017, this paper studied the impact mechanism of innovation policy on enterprise innovation performance through regression analysis. The paper found that the innovation policy has a significant impact on enterprise innovation performance, and the ambidextrous learning plays a mediating role in this process.

scholarly journals Ownership control and rights offerings in Chinese listed firms

2008 ◽  
Vol 5 (4) ◽  
pp. 481-491
Author(s):  
Yi-Hua Lin ◽  
Yenn-Ru Chen ◽  
Jeng-Ren Chiou
Keyword(s):  
Ownership Structure ◽  
Operating Performance ◽  
Listed Companies ◽  
Institutional Transformation ◽  
Listed Firms ◽  
Concentrated Ownership ◽  
Chinese Listed Companies ◽  
Large Shareholders ◽  
Rights Offering ◽  
The Government

Most Chinese listed companies were transformed from state-owned enterprises (SOEs). Institutional transformation results in an ownership structure that is characterized by highly concentrated ownership and state-owned shares, which may exert an influence on corporate finance. In China, listed companies rely heavily on equity for capital needs, but the government blockholders often subscribe to no shares or to partial shares; they tunnel seasoned offering equity (SEO) capital to their nonprofit units through related party transactions. Therefore, we examine large shareholders’ rights offering behavior and firms’ subsequent operating performance. The results reveal that with a higher ratio of state-owned shares, large shareholders tend to give up all preemptive rights for new shares of stock. Evidence confirms a predicted positive relation between large shareholders’ full rights subscription behavior and firms’ subsequent operating performance

Financial and Economic Support of Innovation Processes in the Russian Fuel and Energy Complex

2019 ◽  
Vol 12 (3) ◽  
pp. 77-85
Author(s):  
L. D. Kapranova ◽  
T. V. Pogodina
Keyword(s):  
Oil Recovery ◽  
Large Scale ◽  
Oil And Gas ◽  
New Technologies ◽  
Innovative Development ◽  
Oil Reserves ◽  
Energy Complex ◽  
Innovation Activities ◽  
Substantial Investment ◽  
The Government

The subject of the research is the current state of the fuel and energy complex (FEC) that ensures generation of a significant part of the budget and the innovative development of the economy.The purpose of the research was to establish priority directions for the development of the FEC sectors based on a comprehensive analysis of their innovative and investment activities. The dynamics of investment in the fuel and energy sector are considered. It is noted that large-scale modernization of the fuel and energy complex requires substantial investment and support from the government. The results of the government programs of corporate innovative development are analyzed. The results of the research identified innovative development priorities in the power, oil, gas and coal sectors of the fuel and energy complex. The most promising areas of innovative development in the oil and gas sector are the technologies of enhanced oil recovery; the development of hard-to-recover oil reserves; the production of liquefied natural gas and its transportation. In the power sector, the prospective areas are activities aimed at improving the performance reliability of the national energy systems and the introduction of digital technologies. Based on the research findings, it is concluded that the innovation activities in the fuel and energy complex primarily include the development of new technologies, modernization of the FEC technical base; adoption of state-of-the-art methods of coal mining and oil recovery; creating favorable economic conditions for industrial extraction of hard-to-recover reserves; transition to carbon-free fuel sources and energy carriers that can reduce energy consumption and cost as well as reducing the negative FEC impact on the environment.

DID PUBLIC CASH TRANSFER CROWD OUT INTER-HOUSEHOLD TRANSFERS IN INDONESIA? EVIDENCE FROM "BANTUAN LANGSUNG TUNAI /BLT"

INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 67-84
Author(s):  
Corry Wulandari ◽  
Nadezhda Baryshnikova
Keyword(s):  
Cash Transfer ◽  
Poor People ◽  
Crowding Out ◽  
Transfer System ◽  
Transfer Program ◽  
Exact Matching ◽  
The Public ◽  
Indonesia Family Life Survey ◽  
Public Transfers ◽  
The Government

In 2005 the Government of Indonesia introduced an unconditional cash transfer program called the ‘Bantuan Langsung Tunai’ (BLT), aimed at assisting poor people who were suffering from the removal of a fuel subsidy. There are concerns, however, that the introduction of a public transfer system can negatively affect inter-household transfers through the crowding-out effect, which exists when donor households reduce the amount of their transfers in line with public transfers received from the government. The poor may not therefore have received any meaningful impact from the public cash transfer, as they potentially receive fewer transfers from inter-household private donors. For the government to design a public transfer system, it is necessary to properly understand the dynamics of private transfer behaviour. Hence, this study evaluates whether there exists a crowding-out effect of public transfers on inter-household transfers in Indonesia.Using data from the Indonesia Family Life Survey (IFLS) and by applying Coarsened Exact Matching (CEM) and Difference-in-differences (DID) approaches, this study found that the likelihood to receive transfers from other family members (non-co-resident) reduces when the household receives BLT. However, there is no significant impact of BLT on transfers from parents and friends.

Pollution Control – Regulation and Legal Provisions in India

1988 ◽  
Vol 20 (10) ◽  
pp. 57-62
Author(s):  
A. N. Aggarwal ◽  
V. K. Karia
Keyword(s):  
Environmental Protection ◽  
State Government ◽  
Pollution Control ◽  
Regulatory Agencies ◽  
Legal Provisions ◽  
Fiscal Incentives ◽  
Control Regulation ◽  
Regulatory Approach ◽  
Tax Benefits ◽  
The Government

Immediately after independence in 1946, the Government of India resorted to rapid industrialization to minimize outside dependence and to improve the standard of living. This, while helping the country to grow, also created problems of environmental management. Rapid deterioration of natural resources forced the Government to enact a number of legislative measures and create regulatory agencies both at central and state government levels. These agencies were given powers to effectively implement various Acts. Severe penalties, including fines and imprisonment, were envisaged for offenders of environmental Acts. Responsibilities were defined, to avoid a scapegoat approach. On the other hand, to reward industries showing a positive approach to environmental protection, a number of fiscal incentives and tax benefits were also offered. Recently, to provide more comprehensive legislation for the protection of all the components of the environment under a single agency, a new bill entitled the ‘Environmental Protection Bill, 1986' has been introduced in Parliament. This regulatory approach has started to show results, and more and more industries have started to provide pollution control facilities.

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