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Is environmental innovation conducive to corporate financing? The moderating role of advertising expenditures

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  • Zhongju Liao

Abstract

Environmental innovation is an important way for firms to achieve sustainable development and acquire resources. Based on the stakeholder, resource dependence, and signal transmission theories, this study divided environmental innovation into substantive and strategic eco‐innovation and constructed a relationship model among environmental innovation, advertising expenditures, and corporate financing. Selecting 162 Chinese manufacturing listed companies from 2012 to 2017 as the research sample and adopting the multiple regression analysis method, the study found that substantive eco‐innovation had a positive effect on corporate financing, but strategic eco‐innovation had a significant negative effect on corporate financing. Further, advertising expenditures played a positive moderating role between substantive eco‐innovation, strategic eco‐innovation, and corporate financing. The robustness test further confirmed these results.

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  • Zhongju Liao, 2020. "Is environmental innovation conducive to corporate financing? The moderating role of advertising expenditures," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 954-961, March.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:3:p:954-961
    DOI: 10.1002/bse.2409
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    19. Mingxia Liu & Liqian Liu & Amei Feng, 2024. "The Impact of Green Innovation on Corporate Performance: An Analysis Based on Substantive and Strategic Green Innovations," Sustainability, MDPI, vol. 16(6), pages 1-19, March.
    20. Sohail Ahmad Javeed & Boon Heng Teh & Tze San Ong & Lee Lee Chong & Mohd Fairuz Bin Abd Rahim & Rashid Latief, 2022. "How Does Green Innovation Strategy Influence Corporate Financing? Corporate Social Responsibility and Gender Diversity Play a Moderating Role," IJERPH, MDPI, vol. 19(14), pages 1-22, July.
    21. Hua Feng & Fengyan Wang & Guomin Song & Lanlan Liu, 2022. "Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism," IJERPH, MDPI, vol. 19(17), pages 1-31, August.
    22. Niu, Peng & Yang, Yujia & Sun, Lirong, 2023. "High quality imports and green innovation," Innovation and Green Development, Elsevier, vol. 2(2).

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