The new environmental protection law, ESG investment, and corporate innovation performance

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

International Review of Economics & Finance Pub Date : 2025-01-24 DOI:10.1016/j.iref.2025.103916

Lufeng Lin , Yinglong Zheng , Yongqian Tu

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引用次数: 0

Abstract

Drawing on data from publicly traded Chinese companies spanning from 2009 to 2022, this article investigates the multifaceted impacts of executing the updated Environmental Protection Law. The findings suggest that the updated "Environmental Protection Law" significantly enhances corporate innovation performance. reflecting the policy's role in promoting sustainable development for enterprises. Furthermore, ESG investment acts as a mediating factor between the new Environmental Protection Law policy and the outcomes of corporate innovation, with this mediating effect showing significant heterogeneity between high-pollution and low-pollution enterprises. Specifically, high-pollution enterprises rely more heavily on ESG investment to enhance innovation capabilities under the policy's impetus, while low-pollution enterprises exhibit weaker dependency. Finally, the study also reveals that the positive impact of the new Environmental Protection Law varies significantly between China's eastern and central-western regions.

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来源期刊

International Review of Economics & Finance Multiple-

CiteScore

7.30

自引率

2.20%

发文量

253

期刊介绍： The International Review of Economics & Finance (IREF) is a scholarly journal devoted to the publication of high quality theoretical and empirical articles in all areas of international economics, macroeconomics and financial economics. Contributions that facilitate the communications between the real and the financial sectors of the economy are of particular interest.