Institutional Investors and Corporate Environmental Innovation

37 Pages Posted: 12 Jan 2021 Last revised: 9 Aug 2021

See all articles by Jingbo Cui

Jingbo Cui

Duke Kunshan University

Shaozhou Qi

Wuhan University

Jia Xu

Central China Normal University; Central China Normal University

Shu Zeng

Zhongnan University of Economics and Law, School of Accounting

Date Written: August 7, 2021

Abstract

This paper addresses whether institutional investors drive firms' innovation direction toward environmentally friendly technologies. The data pertain to comprehensive environmental patents filed by Chinese publicly-listed firms in the manufacturing and public utility sectors during the 2003-2015 period. We find that institutional investors are associated with higher ratios of environmental patents in total patents for firms in the pollution-intensive sectors than those in the non-pollution-intensive sectors. Institutional investors exert the roles of financial support and corporate governance in pursuit of monitoring firms' long-term sustainable innovation. They further facilitate the information disclosure on corporate social responsibility. Lastly, institutional investors are motivated by financial returns.

Keywords: Institutional Investors; Environmental Innovation; Patent; Corporate Social Responsibility

JEL Classification: G23, G30, M14, O30

Suggested Citation

Cui, Jingbo and Qi, Shaozhou and Xu, Jia and Zeng, Shu, Institutional Investors and Corporate Environmental Innovation (August 7, 2021). Available at SSRN: https://ssrn.com/abstract=3706637 or http://dx.doi.org/10.2139/ssrn.3706637

Jingbo Cui (Contact Author)

Duke Kunshan University ( email )

No. 8 Duke Avenue
Kunshan, Jiangsu 215316
China

Shaozhou Qi

Wuhan University

Wuhan
China

Jia Xu

Central China Normal University ( email )

Wuhan
China

Central China Normal University ( email )

NO.152 Luoyu Road
Wuhan Hubei P. R.
Wuhan, 430000
China

Shu Zeng

Zhongnan University of Economics and Law, School of Accounting ( email )

182# Nanhu Avenue
Wuhan, 430073
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
54
Abstract Views
290
rank
461,938
PlumX Metrics