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Media environmental coverage and corporate green innovation: A dual-mechanism test based on incurred regulatory pressure and institutional investors’ green attention

Author

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  • Chen, Liang
  • Zhang, Kowkam
  • Duan, Longlong

Abstract

In the context of the “Carbon Peaking and Carbon Neutrality” objectives and the global green transition, media coverage of environmental issues has emerged as a crucial external monitoring and governance mechanism, steering corporations toward sustainable and green development. This paper examines how environmental media coverage affects green innovation, using data from listed companies between 2008 and 2023. Empirical findings demonstrate that environmental media coverage significantly promotes green innovation, primarily through two transmission channels: (1) Incurred regulatory, wherein media exposure strengthens governmental enforcement and public scrutiny, increasing firms’ compliance incentives; and (2) Resource allocation: media coverage improves firms’ environmental reputation in financial markets, increases institutional investors’ attention to green performance, and ultimately facilitates greater investment in green innovation. This study identifies novel drivers of corporate green innovation and underscores the positive role of environmental media coverage in stimulating such behavior, offering a fresh perspective on advancing ecological civilization.

Suggested Citation

  • Chen, Liang & Zhang, Kowkam & Duan, Longlong, 2026. "Media environmental coverage and corporate green innovation: A dual-mechanism test based on incurred regulatory pressure and institutional investors’ green attention," Finance Research Letters, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finlet:v:92:y:2026:i:c:s1544612326001121
    DOI: 10.1016/j.frl.2026.109581
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    JEL classification:

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

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