How does institutional investor preference influence corporate green innovation in China?
研究了2008至2020年中国上市公司中，具有环保偏好的机构投资者如何通过缓解融资约束和激励管理者来促进企业绿色创新，且这种效应在高负债和低管理能力的企业中更显著。
In this study, we examine the green innovation effect of investor preference on Chinese listed companies from 2008 to 2020. We observe that investors with environmental protection preferences can significantly increase enterprise green innovation. The baseline conclusions remain robust after we conduct multiple sensitivity tests, such as establishing a shift-share instrumental variable (Bartik IV), using the Heckman’s two-step method, changing the regression methods, substituting the core variables, adopting the DID method, and considering investors’ ownership. Our analysis shows that the green innovation effect of environmental investors is highly pronounced in companies with a high level of indebtedness and low managerial ability. We verify that environmental investors can improve the green innovation level of enterprises through two potential mechanisms, namely, easing corporate financing constraints and incentivising managers. In addition, political and public attention can strengthen the positive relationship between environmental investors and green innovation.