A Study of the Mechanism of the Role of Voluntary Environmental Regulation on Firms' Innovation Performance

• In Event: SUSTAINABILITY and CORPORATE SOCIAL RESPONSIBILITY: Environmental Investments and Operational Performance

Abstract

This paper studies the samples of Listed Companies in 12 provinces and cities of eastern China from 2007 to 2015, and empirically studies the impact of voluntary environmental regulation on enterprise innovation performance. The results show an inverted U-shaped relationship exists between voluntary environmental regulation and enterprise innovation, and financing constraints play a moderating role. Before the voluntary environmental regulation reaches the optimal supervision threshold, financing constraints have a positive moderating effect on the relationship between voluntary environmental regulation and technological innovation; When the voluntary environmental regulation exceeds this threshold, the effect is negative.

Author

• Mingxue Shang, Tongji University