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Environmental Regulation and Sustainable Growth of Enterprise Value: Mediating Effect Analysis Based on Technological Innovation

Author

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  • Jingjing Qian

    (School of Economics and Management, Nanchang University, Nanchang 330031, China)

  • Chao Chen

    (Economic and Management College, West Anhui University, Lu’an 237012, China)

  • Yun Zhong

    (School of Management, Xiamen University, Xiamen 361005, China)

Abstract

This research aims to analyze the nonlinear relationship among environmental regulation, technology innovation and enterprise value and provide a micro level of enterprise view on environmental regulation. Taking 1714 A-share listed companies in China’s manufacturing industry from 2017 to 2020, a panel regression model was conducted to explore how environmental regulation influences enterprise value. The empirical research results show that: (1) the total effect of environmental regulation on enterprise value is U-shaped and that the technological innovation of enterprises has a partial intermediary effect between environmental regulation and enterprise value; (2) financial flexibility can significantly mitigate the impact of environmental regulations on enterprise value. This study provides a micro-level view of the influencing effect of environmental regulation on enterprise value.

Suggested Citation

  • Jingjing Qian & Chao Chen & Yun Zhong, 2022. "Environmental Regulation and Sustainable Growth of Enterprise Value: Mediating Effect Analysis Based on Technological Innovation," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:13723-:d:950908
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