The power of the imperial envoy: the impact of central government onsite environmental supervision policy on corporate green innovation

Yulei Li; Shiyang Hu; Shu Zhang; Rui Xue

doi:10.1016/j.frl.2022.103580

The power of the imperial envoy: the impact of central government onsite environmental supervision policy on corporate green innovation

Yulei Li, Shiyang Hu^*, Shu Zhang, Rui Xue

^*Corresponding author for this work

Department of Applied Finance

Research output: Contribution to journal › Article › peer-review

35 Citations (Scopus)

Abstract

Focusing on a new policy which features onsite environmental monitoring conducted by central government, we investigate the impact of the National Environmental Protection Supervision (NEPS) policy on Chinese listed firms’ substantive versus symbolic green innovation. The results indicate that substantive green innovations are significantly promoted after the NEPS implementation, while the effect for symbolic ones is not observed. Moreover, the positive impact on substantive green innovation is stronger for firms with low financial constraints and those located in developed regions. Our findings highlight the effectiveness of the process-monitoring environmental policy, providing practical references for environmental policymaking and corporate sustainable development.

Original language	English
Article number	103580
Pages (from-to)	1-11
Number of pages	11
Journal	Finance Research Letters
Volume	52
Early online date	10 Dec 2022
DOIs	https://doi.org/10.1016/j.frl.2022.103580
Publication status	Published - Mar 2023

Keywords

Onsite environmental regulation
Substantive green innovation
Sustainable development
Symbolic green innovation

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10.1016/j.frl.2022.103580

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title = "The power of the imperial envoy: the impact of central government onsite environmental supervision policy on corporate green innovation",

abstract = "Focusing on a new policy which features onsite environmental monitoring conducted by central government, we investigate the impact of the National Environmental Protection Supervision (NEPS) policy on Chinese listed firms{\textquoteright} substantive versus symbolic green innovation. The results indicate that substantive green innovations are significantly promoted after the NEPS implementation, while the effect for symbolic ones is not observed. Moreover, the positive impact on substantive green innovation is stronger for firms with low financial constraints and those located in developed regions. Our findings highlight the effectiveness of the process-monitoring environmental policy, providing practical references for environmental policymaking and corporate sustainable development.",

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AU - Li, Yulei

AU - Hu, Shiyang

AU - Zhang, Shu

AU - Xue, Rui

PY - 2023/3

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AB - Focusing on a new policy which features onsite environmental monitoring conducted by central government, we investigate the impact of the National Environmental Protection Supervision (NEPS) policy on Chinese listed firms’ substantive versus symbolic green innovation. The results indicate that substantive green innovations are significantly promoted after the NEPS implementation, while the effect for symbolic ones is not observed. Moreover, the positive impact on substantive green innovation is stronger for firms with low financial constraints and those located in developed regions. Our findings highlight the effectiveness of the process-monitoring environmental policy, providing practical references for environmental policymaking and corporate sustainable development.

KW - Onsite environmental regulation

KW - Substantive green innovation

KW - Sustainable development

KW - Symbolic green innovation

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The power of the imperial envoy: the impact of central government onsite environmental supervision policy on corporate green innovation

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Keywords

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