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Corporate social responsibility and green innovation: Evidence from mandatory CSR disclosure laws

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  • Mbanyele, William
  • Huang, Hongyun
  • Li, Yafei
  • Muchenje, Linda T.
  • Wang, Fengrong

Abstract

Exploiting the staggered adoption of corporate social responsibility (CSR) disclosure laws as a quasi-natural experiment, we find that firms in countries that adopted CSR disclosure laws increased their green innovation output and quality relative to their counterparts.

Suggested Citation

  • Mbanyele, William & Huang, Hongyun & Li, Yafei & Muchenje, Linda T. & Wang, Fengrong, 2022. "Corporate social responsibility and green innovation: Evidence from mandatory CSR disclosure laws," Economics Letters, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:ecolet:v:212:y:2022:i:c:s0165176522000271
    DOI: 10.1016/j.econlet.2022.110322
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    Cited by:

    1. Antonella Francesca Cicchiello & Ferdinando Marrazza & Salvatore Perdichizzi, 2023. "Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1121-1128, May.
    2. Yuxin Ning & Yihan Zhang, 2023. "Does Digital Finance Improve Corporate ESG Performance? An Intermediary Role Based on Financing Constraints," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    3. Uyar, Ali & Lodh, Suman & Nandy, Monomita & Kuzey, Cemil & Karaman, Abdullah S., 2023. "Tradeoff between corporate investment and CSR: The moderating effect of financial slack, workforce slack, and board gender diversity," International Review of Financial Analysis, Elsevier, vol. 87(C).
    4. Yixuan Chen & Shanyue Jin, 2023. "Corporate Social Responsibility and Green Technology Innovation: The Moderating Role of Stakeholders," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    5. Mbanyele, William & Muchenje, Linda T, 2022. "The dark side of weakening shareholder litigation rights: Evidence from green patenting activities," Finance Research Letters, Elsevier, vol. 47(PB).
    6. Biao Hu & Kai Yuan & Tingyun Niu & Liang Zhang & Yuqiong Guan, 2022. "Study on the Spatial and Temporal Evolution Patterns of Green Innovation Efficiency and Driving Factors in Three Major Urban Agglomerations in China—Based on the Perspective of Economic Geography," Sustainability, MDPI, vol. 14(15), pages 1-28, July.
    7. Do, Trung K. & Vo, Xuan Vinh, 2023. "Is mandatory sustainability disclosure associated with default risk? Evidence from emerging markets," Finance Research Letters, Elsevier, vol. 55(PA).
    8. Zhi Cao & Yinping Mu, 2022. "Social and Environmental Regulations and Corporate Innovation," Sustainability, MDPI, vol. 14(23), pages 1-17, December.
    9. Vilija Aleknevièiene & Sandra Stralkute, 2023. "Impact of corporate social responsibility on cost of debt in Scandinavian public companies," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 585-608, June.
    10. Lopez, David & Weiss, Mariana & Pessanha, José Francisco & Arias, Karla & Gouvea, Livia & Carvalho Metanias Hallack, Michelle, 2023. "The Effects of the Energy Transition on Power Sector Employment in Latin America," IDB Publications (Working Papers) 12680, Inter-American Development Bank.
    11. Huang, Hongyun & Mbanyele, William & Wang, Fengrong & Song, Malin & Wang, Yuzhang, 2022. "Climbing the quality ladder of green innovation: Does green finance matter?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    12. He, Feng & Qin, Shuqi & Liu, Yuanyuan & Wu, Ji (George), 2022. "CSR and idiosyncratic risk: Evidence from ESG information disclosure," Finance Research Letters, Elsevier, vol. 49(C).
    13. Xiaoyang Xu & Muhammad Imran & Muhammad Ayaz & Sonia Lohana, 2022. "The Mediating Role of Green Technology Innovation with Corporate Social Responsibility, Firm Financial, and Environmental Performance: The Case of Chinese Manufacturing Industries," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    14. Luis E. Villegas & Andrés A. Acuña-Duarte & César A. Salazar, 2023. "Corporate Social Responsibility and the Willingness to Eco-Innovate among Chilean Firms," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    15. Li, Yafei & Mbanyele, William & Sun, Jinping, 2022. "Managerial R&D hands-on experience, state ownership, and corporate innovation," China Economic Review, Elsevier, vol. 72(C).
    16. Mbanyele, William & Muchenje, Linda Tinofirei, 2022. "Climate change exposure, risk management and corporate social responsibility: Cross-country evidence," Journal of Multinational Financial Management, Elsevier, vol. 66(C).
    17. Guo, Chunying & Yang, Baochen & Fan, Ying, 2022. "Does mandatory CSR disclosure improve stock price informativeness? Evidence from China," Research in International Business and Finance, Elsevier, vol. 62(C).
    18. Jing‐Yue Liu & Yue‐Jun Zhang & Charles H. Cho, 2023. "Corporate environmental information disclosure and green innovation: The moderating effect of CEO visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3020-3042, November.
    19. Huang, Hongyun & Mbanyele, William & Fan, Shuangshuang & Zhao, Xin, 2022. "Digital financial inclusion and energy-environment performance: What can learn from China," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 342-366.
    20. Xiaowei Ding & Lyu Ye & Yueying Yang & Olga Efimova & Alina Steblyanskaya & Junfeng Zhang, 2022. "The Impact Mechanism of Environmental Information Disclosure on Corporate Sustainability Performance—Micro-Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-22, September.

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    More about this item

    Keywords

    Corporate social responsibility; Green innovation; Climate mitigation; Corporate governance; Social welfare;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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