Year: 2025
Type: article
Abstract: By building a regression model, this study examines the effect of corporate ESG on green innovation. It also looks at how corporate transparency and the level of internal monitoring influence this relationship. It has been discovered that there is a strong correlation between a company's ESG ratings and its commitment to green innovation, and that companies with high ESG ratings are more likely to do so. Additionally, the level of corporate internal oversight and transparency play a helpful moderating function in this relationship, and stronger internal oversight and greater transparency can further foster the growth of green innovation. Additionally, the relationship between ESG ratings and green innovation is mediated, respectively, by business reputation, R&D expenditure, and financial restrictions. A deeper understanding of the effects of ESG in various contexts is made possible by heterogeneity analysis, which demonstrates that state-owned enterprises and larger companies are likely to be positively impacted by ESG ratings. Both the results of the robustness test by substituting explanatory variables technique and the approach using instrumental variables corroborate the conclusions made in this research. This study offers crucial information about how ESG impacts corporate green innovation, which greatly encourages the formulation of corporate sustainability and green innovation policies.
DOI: 10.54097/91chyv14
Authors: Ruopeng Wang, Ziyi Rong
Institution: Duke University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409458111