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Green Image and Incentives: Unraveling Their Moderating Impact on Green Innovations, Investor Perception and Financial Performance

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  • Mayank JAIN

    (Vellore Institute of Technology, John F. Kennedy Block, Vellore, India)

Abstract

This study examines the linkages between technological green innovations, financial performance and investor enthusiasm in listed Indian manufacturing firms, a context under-represented in extant literature. It aims to address the gap in understanding how investor enthusiasm drives the adoption of green innovation practices and their subsequent impact on financial performance. Moreover, the study investigates the moderating effects of green image and green production incentives, providing comprehensive insights into adopting environmentally sustainable practices. Using a quantitative analysis approach, the research uncovers that green process innovation positively influences green product innovation, contributing to financial performance and investor enthusiasm. However, it also reveals that macroeconomic factors and consumer purchasing power challenge green process innovation. Unexpectedly, no empirical evidence supports the moderation effect of green image between green production incentives and investor enthusiasm. Overall, the study contributes to a better understanding of the complex interplay between green innovation, financial performance and investor enthusiasm in the Indian manufacturing context. The findings hold significant implications for practitioners, policymakers and investors towards fostering a more sustainable future for the Indian manufacturing sector. Future research directions include further exploring dynamic relationships, incorporating other types of green innovations, and considering additional metrics for financial performance and investor enthusiasm.

Suggested Citation

  • Mayank JAIN, 2023. "Green Image and Incentives: Unraveling Their Moderating Impact on Green Innovations, Investor Perception and Financial Performance," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 4(6), pages 47-59, June.
    • Handle: RePEc:ahd:journl:v:4:y:2023:i:6:p:47-59
    DOI: 10.37945/cbr.2023.06.06
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    References listed on IDEAS

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    More about this item

    Keywords

    technological green innovations; financial performance; investor enthusiasm; listed Indian manufacturing firms; green image; green production incentives;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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