Golden Returns From Green Investments: The Impact of Corporate Environmental Behaviour on Product Market Performance
基于2003-2022年中国A股重污染上市公司数据，研究发现企业绿色投资每增加一个标准差，产品市场表现提升约2%，主要通过降低运营成本和提升社会声誉实现，而非技术创新。
ABSTRACT In the context of advancing the global economic green transition, advocating for and deepening green investment is a topic of common concern for all. This study utilises panel data from heavily polluting listed companies in China's A‐share market from 2003 to 2022 to examine the impact, mechanisms, and differences of corporate green investment on product market performance. We found that compared to competitors, the more green investments a company makes, the better its product market performance. Specifically, for every standard deviation increase in corporate green investment, product market performance improves by approximately 2%. The primary mechanisms driving this result are reduced operating costs and enhanced social reputation brought about by green investments, rather than improvements in technological innovation. This effect is more pronounced in companies with a higher proportion of executives with strong environmental backgrounds, those receiving more government financial subsidies, and those facing stronger regional environmental regulations. Furthermore, the improvement in product market performance due to green investment also significantly boosts operational performance and market value. Our research uncovers the golden returns of green investment, which is of great significance for expanding green investment scale and achieving sustainable economic development.