IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v66y2023ics0275531923001873.html
   My bibliography  Save this article

Greening through social trust?

Author

Listed:
  • Zhang, Jie
  • Chen, Zhongfei

Abstract

This study examines whether and how social trust affects corporate green innovation. Using the panel samples of Chinese non-financial listed companies from 2010 to 2015, this study finds that social trust has a significant positive impact on corporate green innovation, and this effect remains after a series of robustness checks. Heterogeneity analysis shows that this promotion effect is more pronounced in non-state owned enterprises, small enterprise facing severe financing constraints, and enterprises belonging to non-high-tech and non-heavily polluting industries. This positive impact is also more prominent in areas with high economic uncertainty, a strong Confucian cultural atmosphere, and non-environmentally friendly cities. Based on the theoretical framework of the trust triangle, the exploration of potential mechanisms reveals that the promotion effects of social trust on green innovation is achieved by increasing the external environmental pressure faced by enterprises, enhancing their reputation motivation and their environmental awareness. We further observe that social trust has a substitution effect on the formal institution. These results indicate that social trust plays a key role in affecting the green development of enterprises and can be used as a means of external governance.

Suggested Citation

  • Zhang, Jie & Chen, Zhongfei, 2023. "Greening through social trust?," Research in International Business and Finance, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001873
    DOI: 10.1016/j.ribaf.2023.102061
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531923001873
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2023.102061?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 search for a different version of it.

    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:riibaf:v:66:y:2023:i:c:s0275531923001873. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/ribaf .

    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.