Can green innovation mitigate corporate stock price crash risk? Evidence from China.
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| Title: | Can green innovation mitigate corporate stock price crash risk? Evidence from China. |
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| Authors: | Suo, Xuekun1 (AUTHOR), Lin, Han2 (AUTHOR) linhan@nau.edu.cn, Yuan, Ming3 (AUTHOR), Zhang, Longting1 (AUTHOR), Lu, Yuhe4 (AUTHOR), Ma, Hanyang5,6 (AUTHOR) mahanyang@shu.edu.cn |
| Source: | Environment, Development & Sustainability. Dec2025, Vol. 27 Issue 12, p30693-30716. 24p. |
| Subject Terms: | *Green behavior, *Capital market, *Investment risk, *Market sentiment, *Manufacturing industries, *Environmental degradation, Economic conditions in China |
| Geographic Terms: | China |
| Abstract: | The urgent need to address global environmental degradation has highlighted the importance of green innovation (GI) as an effective strategy. GI possesses the capacity to yield favorable outcomes by fostering proactive innovation and yielding environmental externalities. Although there's substantial research on the economic ramifications of GI, a salient unanswered query is its effect on corporate stock price crash risk (CSPCR). This study aims to investigate the relationship between GI and CSPCR using unbalanced panel data from 2273 manufacturing companies listed on the Chinese A-share market from 2011 to 2021. Based on the proposed theoretical framework, firms can reduce this risk by GI. Both investor attention (IA) and analyst coverage (AC) have a moderating effect, making the positive influence of GI on CSPCR more evident in firms with greater investor scrutiny and analyst attention. These research findings contribute to a deeper understanding of the role of green innovation in capital markets, offering significant theoretical guidance and practical insights for firms in mitigating stock price crash risk. [ABSTRACT FROM AUTHOR] |
| Database: | Energy & Power Source |
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| Abstract: | The urgent need to address global environmental degradation has highlighted the importance of green innovation (GI) as an effective strategy. GI possesses the capacity to yield favorable outcomes by fostering proactive innovation and yielding environmental externalities. Although there's substantial research on the economic ramifications of GI, a salient unanswered query is its effect on corporate stock price crash risk (CSPCR). This study aims to investigate the relationship between GI and CSPCR using unbalanced panel data from 2273 manufacturing companies listed on the Chinese A-share market from 2011 to 2021. Based on the proposed theoretical framework, firms can reduce this risk by GI. Both investor attention (IA) and analyst coverage (AC) have a moderating effect, making the positive influence of GI on CSPCR more evident in firms with greater investor scrutiny and analyst attention. These research findings contribute to a deeper understanding of the role of green innovation in capital markets, offering significant theoretical guidance and practical insights for firms in mitigating stock price crash risk. [ABSTRACT FROM AUTHOR] |
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| ISSN: | 1387585X |
| DOI: | 10.1007/s10668-024-04932-8 |
