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Strategic deviation and corporate green innovation

Author

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  • Wen, Wen
  • Qiao, Fei
  • He, Ying

Abstract

This study investigates the impact of strategic deviation on corporate green innovation. Using a sample of Chinese listed companies during 2006–2019, we find that strategic deviation is negatively associated with corporate green innovation. Mechanism tests show that strategic deviation increases agency costs and information asymmetry, intensifies financial constraints, and thus reduces corporate green innovation. Heterogeneity analyses suggest that the characteristics of state-owned enterprises and heavily polluting industries partially offset the negative impact of strategic deviation on corporate green innovation. This study contributes to the growing literature on the economic consequences of strategic deviation and has policy implications for promoting corporate green innovation.

Suggested Citation

  • Wen, Wen & Qiao, Fei & He, Ying, 2023. "Strategic deviation and corporate green innovation," Finance Research Letters, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323001794
    DOI: 10.1016/j.frl.2023.103806
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Strategic deviation; Corporate green innovation; Agency costs; Information asymmetry; Financial constraint;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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