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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Corporate Social Responsibility and Green Innovation—The Mediating Effect of Financing Constraints
Author(s)
SONG Xiaowen
YANG Cunbo
ZHAO Mengqi
Full-Text PDF
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DOI:10.17265/1548-6583/2023.02.002
Affiliation(s)
Henan University of Technology, Zhengzhou, China
Zhengzhou Shengda University, Zhengzhou, China
Henan University of Technology, Zhengzhou, China
ABSTRACT
Green innovation has become a strategic direction for the country and enterprises, and it is an important facet in achieving high-quality economic development. Whether corporate social responsibility (CSR), as a key competitive strategy for achieving sustainable economic development, can promote corporate green innovation and the path of evolution has become a hot topic of current research. This paper takes Chinese manufacturing A-share listed companies as its sample and uses Stata software to conduct regression analysis to test the relationship between CSR, financing constraints, and green innovation, respectively. It further distinguishes the sample into different technological properties and different regions to study the degree of differentiation of the mediating effect on financing constraints. The results show that CSR can not only directly promote corporate green innovation, but that it also can further positively influence corporate green innovation by alleviating financing constraints. Financing constraints play a mediating role in the relationship between CSR and green innovation, especially in enterprises with strong innovation demand and in regions with high levels of regional economic development. The findings enrich the research perspective on the relationship between CSR and green innovation and provide realistic data support for subsequent studies.
KEYWORDS
corporate social responsibility, financing constraints, green innovation, stakeholder theory, signaling theory
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References
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Carpenter, R. E., & Petersen, B. C. (2002). Is the growth of small firms constrained by internal finance? Review of Economics and statistics, 84(2), 298-309.
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Davis, K. (1960). Can business afford to ignore social responsibilities? California Management Review, 2(3), 70-76.
Erickson, T., & Whited, T. M. (2005). Proxy-quality thresholds: Theory and application. Finance Research Letters, 2, 131-151.
Farre-Mensa, J., & Ljungqvist, A. (2016). Do measures of financial constraints measure financial constraints? Review of Financial Studies, 29(2), 271-308.
Fazzari, S., Hubbard, R. G., & Petersen, B. (1988). Financing constraints and corporate investment. Brookings Papers on Economic Activity, 1988(1), 114-206.
Gao, K., Zhao H. Q., and Wang L. (2022). Director and executive liability insurance and green innovation of manufacturing enterprisesintermediary effect based on internal control Director and executive liability insurance and green innovation of manufacturing enterprisesintermediary effect based on internal control. East China Economic Management, 36(02), 119-128. doi:10.19629/j.cnki.34-1014/f.210713001.
Hall, B. H. (2010). The financing of innovative firms. Review of Economics and Institutions, 1(1), 11-19.
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Hemphill, T. (2004). Corporate citizenship: The case for a new corporate governance model. Business and Society Review, 109(3), 339-361. doi:10.1111/j.0045-3609.2004.00199.
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Martinsson, G. (2010). Equity financing and innovation: Is Europe different from the United States? Journal of Banking & Finance, 34(6), 1215-1224.
Maurer, B. (1999). Innovation and investment under financial constraints and product market competition. International Journal of Industrial Organization, 17(4), 455-476.
Melay, I., O’Dwyer, M., Kraws, S., & Gast, J. (2017). Green entrepreneurship in SMES: A configuration approach. International Journal of Entrepreneurial Venturing, 9(1), 1-17.
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Wang, J. Q., Cai J., and Huang C. J. (2019). Political capital, collective reputation and financing constraints of private enterprises. Macroeconomic Research, (01), 37-48. doi:10.16304/j.cnki.11-3952/f.2019.01.005.
Wen, Z. L., and Ye, B. J. (2014). Mediating effect analysis: method and model development. Advances in Psychological Science, 22(05), 731-745. doi:10.3724/SP.J.1042.2014.00731.
Whited, T. M., & Wu, G. (2006). Financial constraints risk. Review of Financial Studies, 19(2), 531-559.
Wu, F., and Zhang Y. (2021). Research on employee responsibility and enterprise innovation performance from the perspective of instrumental stakeholders. Chinese Journal of Management, 18(02), 203-212. doi:10.3969/j.issn.1672-884x.2021.02.005.
Xiao, X. H., Pan Y., and Wang Z. J. (2021). Does corporate social responsibility promote corporate green innovation? Economic Survey, 38(03), 114-123. doi:10.15931/j.cnki.1006-1096.20210324.001.
Yang, C. B., & Song, X. W. (2023). Assessing the determinants of renewable energy and energy efficiency on technological innovation: Role of human capital development and investment. Environmental Science and Pollution Research, 30, 39055-39075. doi:10.1007/s11356-022-24907-4.
Yang, C. B., & Yasmin, F. (2022). Effects of high-performance human resource practices in the education sector: The mediational model. Front. Psychol., 13, 1042082. doi:10.3389/fpsyg.2022.1042082.
Ye, C. H. (2021). Financing constraints, government subsidies and green innovation of enterprises. Statistics and Decision, 37(21), 184-188. doi:10.13546/j.cnki.tjyjc.2021.21.038.
Yuan, B., Cao X. (2022). Do corporate social responsibility practices contribute to green innovation? The mediating role of green dynamic capability. Technology in Society, 68: 101868. doi:10.1016/j.techsoc.2022.101868.
Yung, C. (2016). Making waves: To innovate or be a fast second? Journal of Financial and Quantitative Analysis, 51(2), 415-433.
Zhang Y. M. (2021). Enterprise ESG performance, financing constraints and green technology innovation [J]. Business Accounting, (11):33-39.
Ziegler, A., Schröder, M., & Rennings, K. (2008). The effect of environmental and social performance on the stock performance of European corporations. Environmental & Resource Economics, 40(4), 609-609.
Carpenter, R. E., & Petersen, B. C. (2002). Is the growth of small firms constrained by internal finance? Review of Economics and statistics, 84(2), 298-309.
Chen, K. and Chang L. (2019). Research on the effectiveness of financing constraint measurement based on investment cash flow sensitivity. Friends of Accounting, (23), 137-142.
Cheng, Y., Zhuang Q. Q., and Guo M. Y. (2021). The impact of financing constraints on enterprise innovationempirical evidence based on Chinese industrial enterprise data. Industrial Economics Review, (03), 114-132. doi:10.19313/j.cnki.cn10-1223/f.2021.03.009.
Carroll, A. B. (1991). Corporate social responsibility evolution of a definitional construct. Business & Society, 38(3), 268-295.
Davis, K. (1960). Can business afford to ignore social responsibilities? California Management Review, 2(3), 70-76.
Erickson, T., & Whited, T. M. (2005). Proxy-quality thresholds: Theory and application. Finance Research Letters, 2, 131-151.
Farre-Mensa, J., & Ljungqvist, A. (2016). Do measures of financial constraints measure financial constraints? Review of Financial Studies, 29(2), 271-308.
Fazzari, S., Hubbard, R. G., & Petersen, B. (1988). Financing constraints and corporate investment. Brookings Papers on Economic Activity, 1988(1), 114-206.
Gao, K., Zhao H. Q., and Wang L. (2022). Director and executive liability insurance and green innovation of manufacturing enterprisesintermediary effect based on internal control Director and executive liability insurance and green innovation of manufacturing enterprisesintermediary effect based on internal control. East China Economic Management, 36(02), 119-128. doi:10.19629/j.cnki.34-1014/f.210713001.
Hall, B. H. (2010). The financing of innovative firms. Review of Economics and Institutions, 1(1), 11-19.
He, Z., & Wintoki, M. B. (2016). The cost of innovation: R&D and high cash holdings in US firms. Journal of Corporate Finance, 41, 280-303.
Hemphill, T. (2004). Corporate citizenship: The case for a new corporate governance model. Business and Society Review, 109(3), 339-361. doi:10.1111/j.0045-3609.2004.00199.
Hu, W., and Zhang X. (2020). Research on the adverse effect of corporate environmental protection social responsibility on green innovation. Accounting Communication, (24), 58-62. doi:10.16144/j.cnki.issn1002-8072.2020.24.012.
Ju, X. S., Lu, D. and Yu Y. H. (2013). Financing constraints, working capital management and enterprise innovation sustainability. Economic Research Journal, 48(01), 4-16.
Kim, Y., Brodhag, C., & Mebratu, D. (2014). Corporate social responsibility driven innovation. Innovation: The European Journal of Social Science Research, 27(2), 175-196.
Li, B. (2021). Influence of financing constraints on corporate innovation investment. Scientific Journal of Economics and Management Research, 3(10), 47-54.
Li, S., and Cao H. (2021). Research on the influence of corporate social responsibility information disclosure on financing constraintsAlso on the synergy of internal control. Prices in China, (02), 78-80.
Liu, J. H. Corporate social responsibility. (1999). Peking: Law Press.
Lu, J., and Zhang S. (2021). Corporate social responsibility performance, media attention and financing constraints. Friends of Accounting, (10), 110-116.
Martinsson, G. (2010). Equity financing and innovation: Is Europe different from the United States? Journal of Banking & Finance, 34(6), 1215-1224.
Maurer, B. (1999). Innovation and investment under financial constraints and product market competition. International Journal of Industrial Organization, 17(4), 455-476.
Melay, I., O’Dwyer, M., Kraws, S., & Gast, J. (2017). Green entrepreneurship in SMES: A configuration approach. International Journal of Entrepreneurial Venturing, 9(1), 1-17.
Michaels, A., & Grüning, M. (2017). Relationship of corporate social responsibility disclosure on information asymmetry and the cost of capital. Journal of Management Control, 28(3), 251-274.
Mirza, A., S. Zailani, M. Iranmanesh, and K. Jayaraman. (2015). Barriers to green innovation initiatives among manufacturers: the Malaysian case. Rev Manag Sci, (4), 1-25. doi 10.1007/s11846-015-0173-9.
Pan, Y., Y. Liang, and Wang (2012). Financing path innovation of Chinese small and medium-sized enterprises. Social Sciences in Yunnan, (01), 94-98.
Pfister, B., Schwaiger, M., & Morath, T. (2020). Corporate reputation and the future cost of equity. Business Research, 13(1), 343-384.
Shen, H. Tian B., C., and Zong Y. (2021). Does listed companies’ social responsibility affect stock market performanceAn empirical test based on hexun rating data. Journal of Southeast University (Philosophy and Social Sciences Edition), 23(04), 79-92. doi:10.13916/j.cnki.issn1671-511x.2021.04.010.
Song, X.-W. (2021). Comparison of corporate social responsibility measurement methods and consistency test. Finance and Accounting Monthly, 42(17), 114-121.
Vallaster, C., Kraus, S., Kailer, N., & Baldwin, B. (2019). Responsible entrepreneurship: Outlining the contingencies. International Journal of Entrepreneurial Behavior & Research, 25(3), 538-553.
Wang, J. Q., Cai J., and Huang C. J. (2019). Political capital, collective reputation and financing constraints of private enterprises. Macroeconomic Research, (01), 37-48. doi:10.16304/j.cnki.11-3952/f.2019.01.005.
Wen, Z. L., and Ye, B. J. (2014). Mediating effect analysis: method and model development. Advances in Psychological Science, 22(05), 731-745. doi:10.3724/SP.J.1042.2014.00731.
Whited, T. M., & Wu, G. (2006). Financial constraints risk. Review of Financial Studies, 19(2), 531-559.
Wu, F., and Zhang Y. (2021). Research on employee responsibility and enterprise innovation performance from the perspective of instrumental stakeholders. Chinese Journal of Management, 18(02), 203-212. doi:10.3969/j.issn.1672-884x.2021.02.005.
Xiao, X. H., Pan Y., and Wang Z. J. (2021). Does corporate social responsibility promote corporate green innovation? Economic Survey, 38(03), 114-123. doi:10.15931/j.cnki.1006-1096.20210324.001.
Yang, C. B., & Song, X. W. (2023). Assessing the determinants of renewable energy and energy efficiency on technological innovation: Role of human capital development and investment. Environmental Science and Pollution Research, 30, 39055-39075. doi:10.1007/s11356-022-24907-4.
Yang, C. B., & Yasmin, F. (2022). Effects of high-performance human resource practices in the education sector: The mediational model. Front. Psychol., 13, 1042082. doi:10.3389/fpsyg.2022.1042082.
Ye, C. H. (2021). Financing constraints, government subsidies and green innovation of enterprises. Statistics and Decision, 37(21), 184-188. doi:10.13546/j.cnki.tjyjc.2021.21.038.
Yuan, B., Cao X. (2022). Do corporate social responsibility practices contribute to green innovation? The mediating role of green dynamic capability. Technology in Society, 68: 101868. doi:10.1016/j.techsoc.2022.101868.
Yung, C. (2016). Making waves: To innovate or be a fast second? Journal of Financial and Quantitative Analysis, 51(2), 415-433.
Zhang Y. M. (2021). Enterprise ESG performance, financing constraints and green technology innovation [J]. Business Accounting, (11):33-39.
Ziegler, A., Schröder, M., & Rennings, K. (2008). The effect of environmental and social performance on the stock performance of European corporations. Environmental & Resource Economics, 40(4), 609-609.