IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v77y2025ics1544612325003204.html
   My bibliography  Save this article

Relationship among environmental regulation costs, corporate accounting policies, and green innovation efficiency

Author

Listed:
  • Wang, Xueting
  • Qiu, Pinyue

Abstract

Using data from A share–listed companies from 2013 to 2022 as a research sample, this paper investigates the relationship among the costs of environmental regulations, corporate accounting policies, and green innovation efficiency. Several findings were obtained from this study. (1) The cost of environmental regulations encourages corporations to improve the efficiency of their green innovation initiatives. (2) Aggressive accounting policies inhibit the efficiency of corporate green innovation. (3) R&D investment plays an intermediary role in the relationship between the cost of environmental regulations and the efficiency of corporate green innovation. (4) The impact of the cost of environmental regulations on the efficiency of green innovation in state-owned enterprises and non-state-owned enterprises varies in terms of ownership types.

Suggested Citation

  • Wang, Xueting & Qiu, Pinyue, 2025. "Relationship among environmental regulation costs, corporate accounting policies, and green innovation efficiency," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003204
    DOI: 10.1016/j.frl.2025.107056
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325003204
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107056?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Nguyen, Thi Hong Hanh & Ntim, Collins G. & Malagila, John K., 2020. "Women on corporate boards and corporate financial and non-financial performance: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 71(C).
    2. Kim, JooMan & Yang, Insun & Yang, Taeyong & Koveos, Peter, 2021. "The impact of R&D intensity, financial constraints, and dividend payout policy on firm value," Finance Research Letters, Elsevier, vol. 40(C).
    3. Chen, Zhongfei & Xie, Guanxia, 2022. "ESG disclosure and financial performance: Moderating role of ESG investors," International Review of Financial Analysis, Elsevier, vol. 83(C).
    4. Paramati, Sudharshan Reddy & Mo, Di & Huang, Ruixian, 2021. "The role of financial deepening and green technology on carbon emissions: Evidence from major OECD economies," Finance Research Letters, Elsevier, vol. 41(C).
    5. Emara, Noha & El Said, Ayah, 2021. "Financial inclusion and economic growth: The role of governance in selected MENA countries," International Review of Economics & Finance, Elsevier, vol. 75(C), pages 34-54.
    6. Wang, Juxian & Ma, Mengdi & Dong, Tianyi & Zhang, Zheyuan, 2023. "Do ESG ratings promote corporate green innovation? A quasi-natural experiment based on SynTao Green Finance's ESG ratings," International Review of Financial Analysis, Elsevier, vol. 87(C).
    7. Wen, Fenghua & Li, Cui & Sha, Han & Shao, Liuguo, 2021. "How does economic policy uncertainty affect corporate risk-taking? Evidence from China," Finance Research Letters, Elsevier, vol. 41(C).
    8. Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad & Otsuka, Miyu, 2021. "Covid-19 and Optimal Portfolio Selection for Investment in Sustainable Development Goals," Finance Research Letters, Elsevier, vol. 38(C).
    9. Xing, Chao & Zhang, Yuming & Tripe, David, 2021. "Green credit policy and corporate access to bank loans in China: The role of environmental disclosure and green innovation," International Review of Financial Analysis, Elsevier, vol. 77(C).
    10. Han, Yingwei & Li, Jie, 2022. "Should investors include green bonds in their portfolios? Evidence for the USA and Europe," International Review of Financial Analysis, Elsevier, vol. 80(C).
    11. Bingler, Julia Anna & Kraus, Mathias & Leippold, Markus & Webersinke, Nicolas, 2022. "Cheap talk and cherry-picking: What ClimateBert has to say on corporate climate risk disclosures," Finance Research Letters, Elsevier, vol. 47(PB).
    12. Chen, Shengqi & Zhang, Hong, 2021. "Does digital finance promote manufacturing servitization: Micro evidence from China," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 856-869.
    13. Xiang, Xiaojian & Liu, Chuanjiang & Yang, Mian, 2022. "Who is financing corporate green innovation?," International Review of Economics & Finance, Elsevier, vol. 78(C), pages 321-337.
    14. Renzhi, Nuobu & Baek, Yong Jun, 2020. "Can financial inclusion be an effective mitigation measure? evidence from panel data analysis of the environmental Kuznets curve," Finance Research Letters, Elsevier, vol. 37(C).
    15. Fang, Zhenming & Kong, Xiaoran & Sensoy, Ahmet & Cui, Xin & Cheng, Feiyang, 2021. "Government’s awareness of Environmental protection and corporate green innovation: A natural experiment from the new environmental protection law in China," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 294-312.
    16. McKillop, Donal & French, Declan & Quinn, Barry & Sobiech, Anna L. & Wilson, John O.S., 2020. "Cooperative financial institutions: A review of the literature," International Review of Financial Analysis, Elsevier, vol. 71(C).
    17. Wu, Qihan & Yan, Dong & Umair, Muhammad, 2023. "Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1103-1114.
    18. Pan, Zhijie & Zheng, Yanting & Xu, Dandan & Wang, Ting, 2024. "How green screening influences risk transmission among stock-bond indices: Insight into the dependence structure," Finance Research Letters, Elsevier, vol. 69(PA).
    19. Zhang, Dongyang, 2021. "Green credit regulation, induced R&D and green productivity: Revisiting the Porter Hypothesis," International Review of Financial Analysis, Elsevier, vol. 75(C).
    20. Xu, Dandan & Guo, Dongli & Yue, Pengpeng & Li, Mengshi, 2024. "Household green consumption: Does digital inclusion matter?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Zongshang & Li, Juan & Zhu, Lijun & Chen, Haisong, 2025. "Can strengthening legal systems enhance regional green total factor productivity?," Finance Research Letters, Elsevier, vol. 77(C).
    2. Li, Yuantian & Xu, Haoyu & Li, Huiru & Xu, Yingming, 2025. "Environmental regulation, opening up to the outside world, and regional green industry development: Policy effects and optimization strategies," Finance Research Letters, Elsevier, vol. 75(C).
    3. Wang, Wei & Cao, QiangYuan & Li, Zhouyang & Zhu, JinYing, 2025. "Digital transformation and corporate environmental performance," Finance Research Letters, Elsevier, vol. 76(C).
    4. Qiao, Nan & Xu, Bohan, 2025. "Green credit policy, media pressure, and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 98(C).
    5. Zhou, Yang & Su, Qian, 2025. "Environmental protection tax, management efficiency, and enterprise green technology innovation," Finance Research Letters, Elsevier, vol. 75(C).
    6. Zhao, Shanshan & Wu, Qiong & Zhou, Xiaodong, 2025. "Impact of green credit on financing constraints of energy-consuming firms," Finance Research Letters, Elsevier, vol. 74(C).
    7. An, Duo & Zheng, Yinglong & Wang, Baomin, 2025. "Corporate social responsibility, board independence, and corporate litigation," Finance Research Letters, Elsevier, vol. 76(C).
    8. Ma, Baowei & Li, Huiwen, 2025. "Antitrust laws, market competition and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 97(C).
    9. Xu, Siyun & Bai, Xiaodong & Chen, Xia, 2025. "Corporate environmental, social, and governance performance, investor attention, and corporate development capability—An empirical examination based on moderating and threshold effects," International Review of Financial Analysis, Elsevier, vol. 102(C).
    10. Li, Yuantian & Xu, Haoyu & Li, Huiru & Xu, Yingming, 2025. "Digital economy, environmental regulations, and green economic development," Finance Research Letters, Elsevier, vol. 75(C).
    11. Wang, Yanpeng & Cui, Lianbiao & Zhou, Jie, 2025. "The impact of green finance and digital economy on regional carbon emission reduction," International Review of Economics & Finance, Elsevier, vol. 97(C).
    12. Wang, Chuyun & Meng, Lingxing & Li, Lei & Zhao, Ziyun, 2025. "Board of directors’ internationalization, internal control quality, and corporate litigation risk," Finance Research Letters, Elsevier, vol. 76(C).
    13. Ren, Yu & Liu, Xiongfei & Zhu, Yi, 2025. "Can the development of digital finance and information transparency improve enterprise investment efficiency?," Finance Research Letters, Elsevier, vol. 73(C).
    14. Lu, Lijun & Wang, Chengwei & He, Limiao & Li, Juan & Zheng, Yinglong, 2025. "Can government regulation curb excessive on-the-job consumption by corporate executives?," Finance Research Letters, Elsevier, vol. 77(C).
    15. Luo, Zhenxiang & Zhou, Xiaolin, 2025. "Environmental courts, environmental investment, and corporate carbon emissions," Finance Research Letters, Elsevier, vol. 75(C).
    16. Wang, Le & Xue, Ke & Luo, Dianjun, 2025. "Media pressure, corporate governance structure, and disclosure quality," International Review of Economics & Finance, Elsevier, vol. 97(C).
    17. Yan, Sicong & Lv, Yang & Chen, Chaoqi & Hua, Jingtian, 2025. "New environmental protection law, polluting enterprises and corporate green technological innovation," Finance Research Letters, Elsevier, vol. 77(C).
    18. Zhang, Yamin & Ding, Zihan & Liu, Zhaoxi, 2025. "Impacts of human resource attention and financial agglomeration on regional innovation," Finance Research Letters, Elsevier, vol. 75(C).
    19. Jiang, Yuan & Wang, Xiaomei & Wang, Wenting & Yu, Xiaohan, 2025. "Impact of government attention guided by environmental policies on green technology innovation," International Review of Financial Analysis, Elsevier, vol. 101(C).
    20. Li, Fan, 2025. "Pledge of controlling shareholder's equity, digital transformation, and green innovation," Finance Research Letters, Elsevier, vol. 76(C).

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003204. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.