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Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation

Riehl, Kevin ; Kiesel, Florian ; Schiereck, Dirk (2022):
Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation. (Publisher's Version)
In: Sustainability, 14 (6), MDPI, e-ISSN 2071-1050,
DOI: 10.26083/tuprints-00021115,
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Item Type: Article
Origin: Secondary publication DeepGreen
Status: Publisher's Version
Title: Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation
Language: English
Abstract:

Green innovation and technology diffusion must be financially and commercially attractive to convince corporate decision makers. This paper focuses on the factors that determine the financial outcome of successful green innovation activities conducted by large, listed companies. We employ a cross-industry dataset including more than 97,954 reports on corporate environmentalism from 286 international listed companies. Our results indicate that economic, political, cultural, firm-specific, investor-related, and governance factors significantly determine the financial performance of green innovation, measured by abnormal returns. Moreover, we can show that factors that reduce the competition in green innovation markets benefit the financial success of firms operating via them. Finally, we find an opposing influence for several factors that benefit earlier stages of innovation (e.g., research output) while harming the later stages (e.g., market introduction and financial performance). These findings imply that a spatial separation strategy for different stages of innovation supports corporate environmentalism activities. Moreover, physical property rights, the governments’ willingness to support green technologies, and economic framework conditions such as oil price, GDP, or public R&D budget need to be balanced by policymakers to address and stimulate green innovation.

Journal or Publication Title: Sustainability
Volume of the journal: 14
Issue Number: 6
Publisher: MDPI
Collation: 23 Seiten
Uncontrolled Keywords: green innovation, corporate environmentalism, Porter hypothesis
Classification DDC: 300 Sozialwissenschaften > 330 Wirtschaft
Divisions: 01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete > Corporate finance
Date Deposited: 08 Apr 2022 11:26
Last Modified: 08 Apr 2022 11:26
DOI: 10.26083/tuprints-00021115
Corresponding Links:
URN: urn:nbn:de:tuda-tuprints-211155
SWORD Depositor: Deep Green
URI: https://tuprints.ulb.tu-darmstadt.de/id/eprint/21115
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