Greening the Ties: Exploring Political Influence on Green Innovation in China
研究中国第18号规定取消政治联系后，非国有企业在高污染行业的绿色创新下降，而国有企业上升，并分析了杠杆、财务绩效等中介和调节因素。
ABSTRACT This study examines how the removal of political ties—through China's Regulation 18—affects green innovation. Adopting a contingent theoretical framework that integrates legitimacy and resource curse theories, we show that the impact of de‐politicisation depends on ownership structure and institutional context. Using a difference‐in‐differences design, we find that green innovation declined (increased) amongst non‐SOEs (SOEs) in high‐pollution industries. Mechanism analysis reveals that leverage and financial performance mediate these effects, while firm age and the presence of Qualified Foreign Institutional Investors (QFII) significantly moderate firm‐level responses. The findings have important implications for ESG governance, sustainability policy, and climate‐related investment strategies.