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How do environmental protection expenditure and green technology innovation affect synergistically the financial performance of heavy polluting enterprises? Evidence from China.
Environ Sci Pollut Res Int. 2022 Dec; 29(59):89597-89613.ES

Abstract

In recent years, economic growth has caused an increasing number of environmental problems in China. In order to achieve the goal of carbon peak on schedule, enterprises need to accelerate green transformation and upgrading. Environmental protection expenditure and green technology innovation are important means of corporate environmental governance strategy, but it is unknown whether they can promote the sustainable development of enterprises. Therefore, this article will analyze the effect of enterprise environmental protection expenditure and green technology innovation on financial performance. Based on relevant theories, this study builds a theoretical model to demonstrate how enterprise environmental protection expenditure and green technology innovation can affect the financial performance of heavy polluting enterprises. Empirical tests are carried out using 293 heavy polluting enterprises in China as the sample. The results reveal that: (i) Enterprise environmental protection expenditure has significant negative effects on current enterprise financial performance, while green technology innovation can significantly promote enterprise financial performance. (ii) When the lag period is two periods, the enterprise environmental protection expenditure and green technology innovation have positive effects on enterprise financial performance respectively, and the effects are the most significant. (iii) Enterprise environmental protection expenditure and green technology innovation synergistically promote enterprise financial performance in the current period, and the impact has a lag effect. (iv) In state-owned enterprises and enterprises with higher corporate governance level, the synergetic promotion effect of environmental protection expenditure and green technology innovation on enterprise financial performance is more significant. Finally, this study provides suggestions for promoting the transformation and upgrading of heavy polluting enterprises and achieving sustainable development from the perspectives of the government, enterprises and the public.

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Authors+Show Affiliations

Tang Y
Business School, Hohai University, Nanjing, 211100, China.
Yue S
Business School, Hohai University, Nanjing, 211100, China.
Ma W
School of Accounting, Zhejiang Gongshang University, Hangzhou, 310018, China. wenchao116@163.com.
Zhang L
Business School, Hohai University, Nanjing, 211100, China.

MeSH

Conservation of Natural ResourcesEnvironmental PolicyHealth ExpendituresInventionsEconomic DevelopmentChina

Pub Type(s)

Journal Article

Language

eng

PubMed ID

35852744

Citation

Tang, Yongjun, et al. "How Do Environmental Protection Expenditure and Green Technology Innovation Affect Synergistically the Financial Performance of Heavy Polluting Enterprises? Evidence From China." Environmental Science and Pollution Research International, vol. 29, no. 59, 2022, pp. 89597-89613.
Tang Y, Yue S, Ma W, et al. How do environmental protection expenditure and green technology innovation affect synergistically the financial performance of heavy polluting enterprises? Evidence from China. Environ Sci Pollut Res Int. 2022;29(59):89597-89613.
Tang, Y., Yue, S., Ma, W., & Zhang, L. (2022). How do environmental protection expenditure and green technology innovation affect synergistically the financial performance of heavy polluting enterprises? Evidence from China. Environmental Science and Pollution Research International, 29(59), 89597-89613. https://doi.org/10.1007/s11356-022-21908-1
Tang Y, et al. How Do Environmental Protection Expenditure and Green Technology Innovation Affect Synergistically the Financial Performance of Heavy Polluting Enterprises? Evidence From China. Environ Sci Pollut Res Int. 2022;29(59):89597-89613. PubMed PMID: 35852744.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - How do environmental protection expenditure and green technology innovation affect synergistically the financial performance of heavy polluting enterprises? Evidence from China. AU - Tang,Yongjun, AU - Yue,Saifan, AU - Ma,Wenchao, AU - Zhang,Lulu, Y1 - 2022/07/19/ PY - 2022/05/14/received PY - 2022/07/04/accepted PY - 2022/7/20/pubmed PY - 2022/11/23/medline PY - 2022/7/19/entrez KW - China KW - Environmental protection expenditure KW - Financial performance KW - Green technology innovation KW - Lag effect KW - Synergetic effect SP - 89597 EP - 89613 JF - Environmental science and pollution research international JO - Environ Sci Pollut Res Int VL - 29 IS - 59 N2 - In recent years, economic growth has caused an increasing number of environmental problems in China. In order to achieve the goal of carbon peak on schedule, enterprises need to accelerate green transformation and upgrading. Environmental protection expenditure and green technology innovation are important means of corporate environmental governance strategy, but it is unknown whether they can promote the sustainable development of enterprises. Therefore, this article will analyze the effect of enterprise environmental protection expenditure and green technology innovation on financial performance. Based on relevant theories, this study builds a theoretical model to demonstrate how enterprise environmental protection expenditure and green technology innovation can affect the financial performance of heavy polluting enterprises. Empirical tests are carried out using 293 heavy polluting enterprises in China as the sample. The results reveal that: (i) Enterprise environmental protection expenditure has significant negative effects on current enterprise financial performance, while green technology innovation can significantly promote enterprise financial performance. (ii) When the lag period is two periods, the enterprise environmental protection expenditure and green technology innovation have positive effects on enterprise financial performance respectively, and the effects are the most significant. (iii) Enterprise environmental protection expenditure and green technology innovation synergistically promote enterprise financial performance in the current period, and the impact has a lag effect. (iv) In state-owned enterprises and enterprises with higher corporate governance level, the synergetic promotion effect of environmental protection expenditure and green technology innovation on enterprise financial performance is more significant. Finally, this study provides suggestions for promoting the transformation and upgrading of heavy polluting enterprises and achieving sustainable development from the perspectives of the government, enterprises and the public. SN - 1614-7499 UR - https://www.unboundmedicine.com/medline/citation/35852744/How_do_environmental_protection_expenditure_and_green_technology_innovation_affect_synergistically_the_financial_performance_of_heavy_polluting_enterprises_Evidence_from_China_ DB - PRIME DP - Unbound Medicine ER -