{"title":"Does corporate green innovation unlock financial doors? The mediating role of environmental performance","authors":"Mohammad A.A. Zaid, Ayman Issa, Fitim Deari, Ploypailin Kijkasiwat, Vijay Kumar","doi":"10.1108/ebr-01-2024-0048","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>This study aims to respond to the latest research calls to precisely revisit the nexus between corporate green innovation (CGI) and financial decisions through deeply investigating the mediating effect of corporate environmental performance measured by the effectiveness of emission reduction.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>This study analyzes nonfinancial-listed firms on the Australian Securities Exchange from 2002 to 2019 using multiple regression analysis on a panel data set. Initially, different static panel data approaches were used. To account for the potential endogeneity issue and generate robust outcomes, the authors apply the one-step system generalized method of moment, two-stage least squares and lagged model approaches.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The results provide a clear indication that the practices of green innovation can favorably contribute to the level of environmental performance, which in turn affect the firm’s ability in opening the new financial doors and shape solid capital structure. In this context, the effective environmental performance fully mediates the nexus between CGI and capital structure of a firm. More importantly, the outcomes are robust and coherent across different estimation techniques.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>The originality of this study lies in its utilization of mediation analysis to explore the relationship between CGI and a firm's financial structure. This approach distinguishes it from previous research by offering a thorough and nuanced understanding of how green innovation practices influence the financing decisions of a firm.</p><!--/ Abstract__block -->","PeriodicalId":47867,"journal":{"name":"European Business Review","volume":"4 1","pages":""},"PeriodicalIF":4.0000,"publicationDate":"2024-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"European Business Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/ebr-01-2024-0048","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
This study aims to respond to the latest research calls to precisely revisit the nexus between corporate green innovation (CGI) and financial decisions through deeply investigating the mediating effect of corporate environmental performance measured by the effectiveness of emission reduction.
Design/methodology/approach
This study analyzes nonfinancial-listed firms on the Australian Securities Exchange from 2002 to 2019 using multiple regression analysis on a panel data set. Initially, different static panel data approaches were used. To account for the potential endogeneity issue and generate robust outcomes, the authors apply the one-step system generalized method of moment, two-stage least squares and lagged model approaches.
Findings
The results provide a clear indication that the practices of green innovation can favorably contribute to the level of environmental performance, which in turn affect the firm’s ability in opening the new financial doors and shape solid capital structure. In this context, the effective environmental performance fully mediates the nexus between CGI and capital structure of a firm. More importantly, the outcomes are robust and coherent across different estimation techniques.
Originality/value
The originality of this study lies in its utilization of mediation analysis to explore the relationship between CGI and a firm's financial structure. This approach distinguishes it from previous research by offering a thorough and nuanced understanding of how green innovation practices influence the financing decisions of a firm.
期刊介绍:
Articles should cover the key business disciplines - management, leadership, marketing, logistics, strategy, quality management, entrepreneurship, business ethics, international business, operations management, manufacturing, accounting and finance - specifically relating to experiences and reflections of interest to business and academia worldwide.