Environmental Regulation, Corporate Social Responsibility (CSR) Disclosure and Enterprise Green Innovation: Evidence from Listed Companies in China.

The resource and environmental constraints on China's economic development have become more prominent; thus there is an urgent need for enterprises to achieve green innovation transformation to promote high-quality economic development. We obtained data on 655 on Chinese A-share companies listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2020, a total of 7205 samples, and explored the influencing mechanism of environmental regulation on corporate green innovation and the moderating mechanism of CSR disclosure by constructing a nonlinear fixed-effect regression model. The results showed: (1) the overall level of green innovation of listed companies is low, and the relationship between environmental regulation and enterprise green innovation presents the U-shaped characteristic of changing from cost effect to innovation compensation effect; (2) non-state-owned enterprises have less tolerance and more sensitive response to environmental regulation than state-owned enterprises; (3) social responsibility information disclosure has a positive regulatory effect on environmental regulation and enterprise green innovation, and non-state-owned enterprises are more significant. It provides references for the government to adjust the intensity of environmental regulation, and, meanwhile, for enterprises to improve the level of environmental protection and the CSR disclosure, and enhance the green innovation ability of enterprises in emerging market.

Impact of the implementation of carbon emission trading on corporate financial performance: Evidence from listed companies in China.

With the development of ecological paradigm coupled with the relentless implementation of myriad environmental policies in China, the rapid development of carbon emission trading and carbon trading market has had a vital impact on the financial performance of enterprises at the microlevel. This study has sampled the A-share listed companies in China, from 2009 to 2018, and adopted the difference-in-difference (DID) method to investigate the effect of the carbon emission trading on corporate financial performance from the microlevel. Evidence showed that the implementation of carbon emission trading effectively improved the total asset-liability ratio of enterprises, though it reduced the value of the current capital market. Moreover, in the regions under strict legal environment, the enhancement effect of the total asset-liability ratio was more obvious, whereas in the regions under loose legal environment, the reduction effect of the value of the capital market was more obvious. Further analysis showed that the implementation of carbon emission trading could not promote Chinese enterprises to increase R&D investment. Hence the implementation of carbon emission trading has improved the level of non-business income of enterprises incorporated into the trading system, but its impact on the investment income of enterprises was not significant.