Riehl, Kevin ; Kiesel, Florian ; Schiereck, Dirk (2022)
Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation.
In: Sustainability, 14 (6)
doi: 10.3390/su14063651
Article, Bibliographie
This is the latest version of this item.
Abstract
Green innovation and technology diffusion must be financially and commercially attractive to convince corporate decision makers. This paper focuses on the factors that determine the financial outcome of successful green innovation activities conducted by large, listed companies. We employ a cross-industry dataset including more than 97,954 reports on corporate environmentalism from 286 international listed companies. Our results indicate that economic, political, cultural, firm-specific, investor-related, and governance factors significantly determine the financial performance of green innovation, measured by abnormal returns. Moreover, we can show that factors that reduce the competition in green innovation markets benefit the financial success of firms operating via them. Finally, we find an opposing influence for several factors that benefit earlier stages of innovation (e.g., research output) while harming the later stages (e.g., market introduction and financial performance). These findings imply that a spatial separation strategy for different stages of innovation supports corporate environmentalism activities. Moreover, physical property rights, the governments’ willingness to support green technologies, and economic framework conditions such as oil price, GDP, or public R&D budget need to be balanced by policymakers to address and stimulate green innovation.
| Item Type: | Article |
|---|---|
| Erschienen: | 2022 |
| Creators: | Riehl, Kevin ; Kiesel, Florian ; Schiereck, Dirk |
| Type of entry: | Bibliographie |
| Title: | Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation |
| Language: | English |
| Date: | 2022 |
| Publisher: | MDPI |
| Journal or Publication Title: | Sustainability |
| Volume of the journal: | 14 |
| Issue Number: | 6 |
| Collation: | 23 Seiten |
| DOI: | 10.3390/su14063651 |
| Corresponding Links: | |
| Abstract: | Green innovation and technology diffusion must be financially and commercially attractive to convince corporate decision makers. This paper focuses on the factors that determine the financial outcome of successful green innovation activities conducted by large, listed companies. We employ a cross-industry dataset including more than 97,954 reports on corporate environmentalism from 286 international listed companies. Our results indicate that economic, political, cultural, firm-specific, investor-related, and governance factors significantly determine the financial performance of green innovation, measured by abnormal returns. Moreover, we can show that factors that reduce the competition in green innovation markets benefit the financial success of firms operating via them. Finally, we find an opposing influence for several factors that benefit earlier stages of innovation (e.g., research output) while harming the later stages (e.g., market introduction and financial performance). These findings imply that a spatial separation strategy for different stages of innovation supports corporate environmentalism activities. Moreover, physical property rights, the governments’ willingness to support green technologies, and economic framework conditions such as oil price, GDP, or public R&D budget need to be balanced by policymakers to address and stimulate green innovation. |
| Uncontrolled Keywords: | green innovation, corporate environmentalism, Porter hypothesis |
| Classification DDC: | 300 Social sciences > 330 Economics |
| Divisions: | 01 Department of Law and Economics 01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete 01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete > Corporate finance |
| Date Deposited: | 02 Aug 2024 12:39 |
| Last Modified: | 02 Aug 2024 12:39 |
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| Suche nach Titel in: | TUfind oder in Google |
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Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation. (deposited 08 Apr 2022 11:26)
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