Does E.S.G. Performance Enhance Corporate Green Innovation? The Mediating Effect of Government Subsidies and the Moderating Role of Media Attention

• 영문명: Does E.S.G. Performance Enhance Corporate Green Innovation? The Mediating Effect of Government Subsidies and the Moderating Role of Media Attention
• 발행기관: 한국무역학회
• 저자명: Hongchun Wang 권일숙(Il-Sook Kwon)
• 간행물 정보: 『Journal of Korea Trade (JKT)』Vol.28 No.2, 129~157쪽, 전체 29쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2024.04.27

국문 초록

Purpose - This paper aims to investigate the relationship mechanism between environmental, social, and governance (E.S.G.) scores of Chinese A-share listed companies and corporate green innovation for the period 2009 through 2022. The research further seeks to elucidate the mediating role of government subsidies and explore the moderating impact of media attention on the relationship between government subsidies and corporate green innovation. Through a heterogeneity analysis of the geographical distribution of Chinese companies, our study aims to discern regional differences in the impact of E.S.G. scores on green innovation across the western, central, and eastern regions of China. Design/Methodology – The empirical model explores the mechanisms among E.S.G. scores, government subsidies, media attention, and green innovation. E.S.G. scores are measured using the widely adopted Huazheng E.S.G. rating in China, whereas corporate green innovation is quantified through the number of green patents obtained in a given year. Data on government subsidies and media coverage are acquired through public databases. Findings – E.S.G. scores exhibit a significant positive impact on corporate green innovation, and government subsidies significantly enhance this positive impact. Furthermore, media attention amplifies the impact of government subsidies on green innovation. Firm size, industry, and regional differences are observed in the impact of E.S.G. scores on corporate green innovation, with more pronounced effects for large firms, manufacturing industries, and the economically developed eastern region of China. Originality/value - Our study assesses the relationship between E.S.G. scores and green innovation in Chinese companies from an external perspective. Diverging from most E.S.G. studies that focus on financial performance and corporate value, we introduce government subsidies and media attention as mediating and moderating variables, respectively, to investigate the mechanisms behind corporate green innovation. It offers valuable insights for guiding government, media, companies, and investors in strengthening corporate social responsibility initiatives.

영문 초록

Purpose - This paper aims to investigate the relationship mechanism between environmental, social, and governance (E.S.G.) scores of Chinese A-share listed companies and corporate green innovation for the period 2009 through 2022. The research further seeks to elucidate the mediating role of government subsidies and explore the moderating impact of media attention on the relationship between government subsidies and corporate green innovation. Through a heterogeneity analysis of the geographical distribution of Chinese companies, our study aims to discern regional differences in the impact of E.S.G. scores on green innovation across the western, central, and eastern regions of China. Design/Methodology – The empirical model explores the mechanisms among E.S.G. scores, government subsidies, media attention, and green innovation. E.S.G. scores are measured using the widely adopted Huazheng E.S.G. rating in China, whereas corporate green innovation is quantified through the number of green patents obtained in a given year. Data on government subsidies and media coverage are acquired through public databases. Findings – E.S.G. scores exhibit a significant positive impact on corporate green innovation, and government subsidies significantly enhance this positive impact. Furthermore, media attention amplifies the impact of government subsidies on green innovation. Firm size, industry, and regional differences are observed in the impact of E.S.G. scores on corporate green innovation, with more pronounced effects for large firms, manufacturing industries, and the economically developed eastern region of China. Originality/value - Our study assesses the relationship between E.S.G. scores and green innovation in Chinese companies from an external perspective. Diverging from most E.S.G. studies that focus on financial performance and corporate value, we introduce government subsidies and media attention as mediating and moderating variables, respectively, to investigate the mechanisms behind corporate green innovation. It offers valuable insights for guiding government, media, companies, and investors in strengthening corporate social responsibility initiatives.

키워드

E.S.G. Scores Government Subsidies Green Innovation Media Attention