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Collective empathy could leap through time: War heritage and corporate green innovation

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  • Zeng, Huixiang
  • Lu, Wenjia
  • Zhou, Jian
  • Kong, Dongmin
  • Cheng, Xu
  • Huang, Luqi

Abstract

The study investigates the impact of collective empathy on corporate green innovation from the perspective of war heritage. Drawing on stakeholder theory and empathy theory, we argue that collective empathy fosters corporate green innovation by generating public emotional empathy toward local descendants of war victims and enhance cognitive empathy within firms regarding the environmental needs of local communities. Analyzing data from Chinese-listed firms in heavily polluting industries between 2010 and 2019, we find that collective empathy significantly encourages green innovation efforts. Mechanism analyses indicate that collective emotional and cognitive empathy serve as key pathways in this relationship. Furthermore, state-owned ownership and formal institutions reinforce and complement the positive effect of collective empathy on corporate green innovation.

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  • Zeng, Huixiang & Lu, Wenjia & Zhou, Jian & Kong, Dongmin & Cheng, Xu & Huang, Luqi, 2025. "Collective empathy could leap through time: War heritage and corporate green innovation," Journal of Corporate Finance, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:corfin:v:93:y:2025:i:c:s0929119925000768
    DOI: 10.1016/j.jcorpfin.2025.102808
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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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