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Impact of media attention on corporate green innovation: What is the role of dual environmental regulation?

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  • Chen, Ning
  • Yan, Nan
  • Xie, Henglang
  • Ou, Yifan

Abstract

This study explores the intricate interplay between media attention, dual environmental regulation, and corporate green innovation quality using a comprehensive dataset of Chinese A-share listed companies. Thus, our rigorous empirical analysis reveals that media visibility significantly affects corporate environmental sustainability efforts, with formal and informal environmental regulations moderating its impact. Media attention acts as a powerful catalyst for green innovation during growth and mature stages of a company's lifecycle; however, its effect diminishes during recessions. We determine significant heterogeneity across industry types and ownership structures. Non-high-polluting industries and non-state-owned enterprises show stronger positive responses to media scrutiny in their green innovation efforts than high-polluting sectors and state-owned enterprises. Furthermore, formal environmental regulations amplify the positive effect of media attention on green innovation, suggesting a synergistic potential that encourages companies to exceed baseline environmental standards. In contrast, while having no direct impact on green innovation, informal environmental regulation significantly moderates the relationship between media attention and innovation quality. These findings add to the literature on environmental innovation by demonstrating the conditional effectiveness of media attention and the critical role of regulatory frameworks in fostering sustainable corporate practices across industries and ownership contexts, with implications for policymakers, corporate strategists, and environmental advocates.

Suggested Citation

  • Chen, Ning & Yan, Nan & Xie, Henglang & Ou, Yifan, 2024. "Impact of media attention on corporate green innovation: What is the role of dual environmental regulation?," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    • Handle: RePEc:eee:finana:v:96:y:2024:i:pa:s105752192400485x
    DOI: 10.1016/j.irfa.2024.103553
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    More about this item

    Keywords

    Corporate green innovation; Media attention; Environmental regulation; Corporate sustainability;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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