Corporate governance and green innovation: international evidence

IF 3.6 Q1 BUSINESS, FINANCE Review of Accounting and Finance Pub Date : 2024-01-08 DOI:10.1108/raf-04-2023-0137
Marcellin Makpotche, Kais Bouslah, Bouchra M’Zali
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Abstract

Purpose

This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.

Design/methodology/approach

The study is based on a sample of 3,896 firms from 2002 to 2021, covering 45 countries worldwide. The authors adopt Tobin’s Q model to conceptualize the relationship between corporate governance and investment in green research and development (R&D). The authors argue that agency costs and financial market frictions affect corporate investment and are fundamental factors in R&D activities. By limiting agency conflicts, effective governance favors efficiency, facilitates access to external financing and encourages green innovation. The authors analyzed the causal effect by using the system-generalized method of moments (system-GMM).

Findings

The results reveal that the better the corporate governance, the more the firm invests in green R&D. A 1%-point increase in the corporate governance ratings leads to an increase in green R&D expenses to the total asset ratio of about 0.77 percentage points. In addition, an increase in the score of each dimension (strategy, management and shareholder) of corporate governance results in an increase in the probability of green product innovation. Finally, green innovation is positively related to firm environmental performance, including emission reduction and resource use efficiency.

Practical implications

The findings provide implications to support managers and policymakers on how to improve sustainability through corporate governance. Governance mechanisms will help resolve agency problems and, in turn, encourage green innovation.

Social implications

Understanding the impact of corporate governance on green innovation may help firms combat climate change, a crucial societal concern. The present study helps achieve one of the precious UN’s sustainable development goals: Goal 13 on climate action.

Originality/value

This study goes beyond previous research by adopting Tobin’s Q model to examine the relationship between corporate governance and green R&D investment. Overall, the results suggest that effective corporate governance is necessary for environmental efficiency.

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公司治理与绿色创新:国际证据
目的 本研究旨在利用托宾的 Q 投资模型来探讨公司治理与绿色创新之间的关系。作者采用托宾 Q 模型对公司治理与绿色研发(R&D)投资之间的关系进行了概念化。作者认为,代理成本和金融市场摩擦会影响企业投资,是研发活动的基本因素。通过限制代理冲突,有效的治理有利于提高效率、促进外部融资和鼓励绿色创新。作者使用系统-广义矩方法(system-GMM)分析了因果效应。公司治理评级每提高 1%,绿色研发费用占总资产的比例就会提高约 0.77 个百分点。此外,公司治理各维度(战略、管理和股东)得分的增加会导致绿色产品创新概率的增加。最后,绿色创新与企业的环境绩效(包括减排和资源利用效率)呈正相关。社会意义了解公司治理对绿色创新的影响有助于企业应对气候变化这一重要的社会问题。本研究有助于实现联合国宝贵的可持续发展目标之一,即关于气候行动的目标 13:原创性/价值本研究超越了以往的研究,采用托宾 Q 模型来考察公司治理与绿色研发投资之间的关系。总体而言,研究结果表明,有效的公司治理是提高环境效率的必要条件。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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