Does corporate green innovation unlock financial doors? The mediating role of environmental performance

IF 4 Q2 BUSINESS European Business Review Pub Date : 2024-09-20 DOI:10.1108/ebr-01-2024-0048
Mohammad A.A. Zaid, Ayman Issa, Fitim Deari, Ploypailin Kijkasiwat, Vijay Kumar
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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.

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企业绿色创新能否打开金融大门?环境绩效的中介作用
目的 本研究旨在响应最新的研究呼吁,通过深入研究以减排效果衡量的企业环境绩效的中介效应,准确地重新审视企业绿色创新(CGI)与财务决策之间的关系。最初使用了不同的静态面板数据方法。为了考虑潜在的内生性问题并得出稳健的结果,作者采用了一步系统广义矩法、两阶段最小二乘法和滞后模型法。研究结果研究结果清楚地表明,绿色创新的实践可以促进环境绩效水平的提高,进而影响企业打开新的金融大门和塑造稳固资本结构的能力。在此背景下,有效的环境绩效完全介导了企业 CGI 与资本结构之间的关系。更重要的是,不同的估计技术得出的结果是稳健和一致的。这种方法有别于以往的研究,它提供了对绿色创新实践如何影响企业融资决策的全面而细致的理解。
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来源期刊
CiteScore
8.30
自引率
4.80%
发文量
34
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.
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