{"title":"Ecological risk management: Effects of carbon risk on firm innovation investment","authors":"","doi":"10.1016/j.irfa.2024.103514","DOIUrl":null,"url":null,"abstract":"<div><p>We investigate the impact of carbon risk on firms' innovation investments. Using a two-way fixed-effects panel regression with a panel dataset of Chinese listed firms for 2018–2021, we find that carbon risk inhibits firms' innovation investments. We also confirm the U-shaped relationship between carbon risk and innovation investment over the long term. We further reveal the conditioning roles of financial constraints, new investments, and carbon information disclosure at the firm level. Additionally, we find that firms' environmental awareness alleviates the impact of carbon risk on innovation investment. The results of this study have implications for firm managers, encouraging them to integrate carbon risk considerations when making the decision to promote firm innovation.</p></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":null,"pages":null},"PeriodicalIF":7.5000,"publicationDate":"2024-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Review of Financial Analysis","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1057521924004460","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
We investigate the impact of carbon risk on firms' innovation investments. Using a two-way fixed-effects panel regression with a panel dataset of Chinese listed firms for 2018–2021, we find that carbon risk inhibits firms' innovation investments. We also confirm the U-shaped relationship between carbon risk and innovation investment over the long term. We further reveal the conditioning roles of financial constraints, new investments, and carbon information disclosure at the firm level. Additionally, we find that firms' environmental awareness alleviates the impact of carbon risk on innovation investment. The results of this study have implications for firm managers, encouraging them to integrate carbon risk considerations when making the decision to promote firm innovation.
我们研究了碳风险对企业创新投资的影响。通过对2018-2021年中国上市公司的面板数据集进行双向固定效应面板回归，我们发现碳风险会抑制企业的创新投资。我们还证实了碳风险与创新投资之间的长期 U 型关系。我们进一步揭示了财务约束、新投资和碳信息披露在企业层面的调节作用。此外，我们还发现，企业的环境意识会减轻碳风险对创新投资的影响。本研究的结果对企业管理者具有启示意义，鼓励他们在做出促进企业创新的决策时将碳风险因素考虑在内。
期刊介绍：
The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.
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