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Environmental preferences, administrative penalties, and green innovation

Author

Listed:
  • Ma, Teng
  • Li, Yilin
  • Peng, Zhongyao

Abstract

This study develops a panel dataset utilizing financial disclosures from A-share listed firms in China spanning 2008–2023, conducting an empirical examination of the dynamic interplay among environmental preferences, administrative penalties, and green innovation. The findings indicate that environmental preferences significantly promote corporate green innovation, while administrative penalties play a crucial incentivizing role. Moreover, administrative penalties significantly moderate the relationship between environmental preferences and corporate green innovation, enhancing the positive effect of environmental preferences. Additionally, the effect of environmental preferences on corporate green innovation demonstrates substantial disparities when comparing institutional characteristics, particularly between state-owned entities (SOEs) and private enterprises (PEs).

Suggested Citation

  • Ma, Teng & Li, Yilin & Peng, Zhongyao, 2025. "Environmental preferences, administrative penalties, and green innovation," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325012711
    DOI: 10.1016/j.frl.2025.108013
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    References listed on IDEAS

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