The mechanism of media pressure on corporate green technology innovation: the moderating effect of corporate internal governance

ABSTRACT

This paper has exaimed the causal effect between media pressure and corporate green innovation through the micro-perspective of internal governance. We find that media pressure is supposed to effectively improve the enterprise green technology innovation, ownership concentration, independent directors and salary incentives have a significant positive U-shaped regulatory effect on the relationship between media pressure and enterprise green technology innovation. CEO duality and equity incentives are significantly moderating the relationship between media pressure and corporate green technology innovation. As for property heterogeneity, media pressure effectively improves the enterprises green innovation performance of state-owned enterprises (SOEs) and non-state-owned enterprises (Non-SOEs). Specifically, the moderating effect of internal governance elements is consistent with the baseline results in the Non-SOEs sample, while ownership concentration inverted U-shape regulates this process and other internal governance elements are consistent with the baseline results and in the SOEs sample.

KEYWORDS:

• Media pressure
• green technology innovation
• environmental sustainability
• internal governance

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 high-tech enterprises are selected with reference to the industry categories identified by the classification of high-tech industries (the manufacturing industry) (2013) issued by the China Bureau of statistics

2 The environmental pollution and emissions (i.e. Outbreak of PM2.5) have gradually aroused widespread concern in China since 2011, which makes the public pay more attention to the pollution behaviours of enterprises (He, Ma, and Zhu 2016; Wu and Hu 2020). Thus, 2011 is selected as the beginning of the sample year in this paper. While 2018 is chosen as the last complete calendar year that available so far during the sample periods of this paper.

3 For controversial reports, the nature of the report is determined according to the principle of the minority obeying the majority. A positive news means that it will convey constructive information about enterprise's environmental behaviour as expected, such as increasing investment in a new green-tech innovation project or green recycling-related equipment. While a negative news is likely to deliver destructive information on enterprises’ pollution behaviour, such as coverage on excessive pollution emission, related unqualified environmental assessment and other context. A neutral report is supposed to express information of neither positive or negative effects on enterprises’ environment-related behaviour, such as the innovation of non-energy-saving products.

4 If the provincial marketization index above the average figure, the value of this dummy variable will be assigned to 1. Otherwise, it will be given as 0.

5 Model 7 is considered to fit best among all 7 models in this paper for it has the smallest log likelihood value and Akaike information criterion (AIC) value, and thereby relevant assessment will be explored according to this model.

Additional information

Funding

This work was supported by the Hubei Provincial Department of Education Fund of Science and Technology [grant number Q20211610]; Jiangsu Provincial Department of Education Fund of Philosophy and Social Science [grant number 2022SJYB1464]; Humanities and Social Sciences Foundation of Suzhou University of Science and Technology [grant number XKR202112]; Hubei Provincial Department of Education Fund of Humanities and Social Science [grant number 21Q145].

Notes on contributors

Sumin Hu

Sumin Hu obtained her BS and MS and PhD at the Wuhan University of Technology but currently works at the Suzhou University of Science and Technology, Suzhou, Jiangsu, China. From 2011 to 2022, she worked in the areas of innovation policy analysis, regional economic modelling, enterprises economic analysis and economy sustainability transition. She is currently with Applied Economics mainly focusing on innovation policy economic evaluation model.

Haoqiang Wu

Haoqiang Wu received his BS degree in business from Sanxia University and PhD degree from Wuhan university and Technology but currently works at the Wuhan Polytechnic University, Wuhan, Hubei, China. From 2009 to 2020, he focused his research interest on enterprise management and sustainable development. He is currently with Applied Economics working mainly on enterprises innovation and management.