Skip to main content

Advertisement

SpringerLink
Log in

The impact of the degree of coupling coordination between green finance and environmental regulations on firms’ innovation performance: evidence from China

  • Original Research
  • Published:
Annals of Operations Research Aims and scope Submit manuscript

A Correction to this article was published on 27 December 2023

This article has been updated

Abstract

Integrating the resource-based view and institution-based view theories, this paper examines the impact of the degree of coupling coordination between green finance and environmental regulations on firms’ innovation performance. Using a sample of 1698 listed firms in China from 2008 to 2017, we find that the degree of coupling coordination between the regional green finance development level and environmental regulations is positively related to firms’ innovation performance. Further, the results show that the degree of state ownership and government governance efficiency strengthen this positive relationship. We deepen our understanding of how environmental institutions coordinate to affect firms’ innovation performance by combining the resource- and institution-based view theories.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Change history

References

  • Agrell, P., Mattsson, P., & Mansson, J. (2020). Impacts on efficiency of merging the Swedish district courts. Annals of Operations Research, 288(2), 653–679.

  • Allevi, E., Gnudi, A., Konnov, I. V., & Oggioni, G. (2018). Decomposition method for oligopolistic competitive models with common environmental regulation. Annals of Operations Research, 268(1–2), 441–467.

    Google Scholar 

  • An, S. M., Li, B., Song, D. P., & Chen, X. (2020). Green credit financing versus trade credit financing in a supply chain with carbon emission limits. European Journal of Operational Research, 292(1), 125–142.

    Google Scholar 

  • Bai, C. E., Lu, J. Y., & Tao, Z. G. (2009). How does privatisation work in China? Journal of Comparative Economics, 37(3), 453–470.

    Google Scholar 

  • Bartram, S. M., Hou, K. W., & Kim, S. (2022). Real effects of climate policy: Financial constraints and spillovers. Journal of Financial Economics, 143(02), 668–696.

    Google Scholar 

  • Bendig, D., Foege, J. N., Endriss, S., & Brettel, M. (2020). The effect of family involvement on innovation outcomes: The moderating role of board social capital. Journal of Product Innovation Management, 37(3), 249–272.

    Google Scholar 

  • Benkraiem, R., & Zopounidis, C. (2021). Preface: Regression methods based on OR techniques and computational aspects in management, economics and finance. Annals of Operations Research, 306(1–2), 1–6.

    Google Scholar 

  • Benlemlih, M., Jaballah, J., & Kermiche, L. (2022). Does financing strategy accelerate corporate energy transition? Evidence from green bonds. Business Strategy and the Environment. https://doi.org/10.1002/bse.3180

    Article  Google Scholar 

  • Bhutta, U. S., Tariq, A., Farrukh, M., Raza, A., & Iqbal, M. K. (2022). Green bonds for sustainable development: Review of literature on development and impact of green bonds. Technological Forecasting and Social Change, 175, 121378.

    Google Scholar 

  • Blanco, I., & Wehrheim, D. (2017). The bright side of financial derivatives: Options trading and firm innovation. Journal of Financial Economics, 125(01), 99–119.

    Google Scholar 

  • Boisot, M., & Child, J. (1996). From fiefs to clans and network capitalism: Explaining china’s emerging economic order. Administrative Science Quarterly, 41(4), 600–628.

    Google Scholar 

  • Brown, J. R., Martinsson, G., & Thomann, C. (2022). Can environmental policy encourage technical change? Emissions Taxes and R&D investment in polluting firms. Review of Financial Studies, 35(10), 4518–4560.

    Google Scholar 

  • Cai, L., Anokhin, S., Yin, M. M., & Hatfield, D. E. (2015). Environment, resource integration, and new ventures’ competitive advantage in China. Management and Organization Review, 12(2), 333–356.

    Google Scholar 

  • Chang, C. H., & Sam, A. G. (2015). Corporate environmentalism and environmental innovation. Journal of Environmental Management, 153, 84–92.

    Google Scholar 

  • Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2020). Does data-driven culture impact innovation and performance of a firm? An empirical examination. Annals of Operations Research. https://doi.org/10.1007/s10479-020-03887-z

    Article  Google Scholar 

  • Chen, J. Y., Geng, Y., & Liu, R. (2022). Carbon emissions trading and corporate green investment: The perspective of external pressure and internal incentive. Business Strategy and the Environment. https://doi.org/10.1002/bse.3284

    Article  Google Scholar 

  • Chen, S. M., Sun, Z., Tang, S., & Wu, D. H. (2011). Government intervention and investment efficiency: Evidence from China. Journal of Financial Economics, 17(02), 259–271.

    Google Scholar 

  • Chen, V. Z., Li, J., Shapiro, D. M., & Zhang, X. X. (2012). Ownership structure and innovation: An emerging market perspective. Asia Pacific Journal of Management, 31(1), 1–24.

    Google Scholar 

  • Chen, Y. B., Wang, S. S., Li, W., Sun, Q., & Tong, W. H. S. (2015). Institutional environment, firm ownership and IPO first-day returns: Evidence from China. Journal of Corporate Finance, 32, 150–168.

    Google Scholar 

  • Chevallier, J., Goutte, S., Ji, Q., & Guesmi, K. (2021). Green finance and the restructuring of the oil-gas-coal business model under carbon asset stranding constraints. Energy Policy, 149, 112055.

    Google Scholar 

  • Choi, S. B., Lee, S. H., & Williams, C. (2011). Ownership and firm innovation in a transition economy: Evidence from China. Research Policy, 40(3), 441–452.

    Google Scholar 

  • Cui, H. R., Wang, R. Y., & Wang, H. R. (2020). An evolutionary analysis of green finance sustainability based on multi-agent game. Journal of Cleaner Production, 269, 121799.

    Google Scholar 

  • Cui, X., Wang, P. P., Sensoy, A., Nguyen, D. K., & Pan, Y. Y. (2022). Green credit policy and corporate productivity: Evidence from a quasi-natural experiment in China. Technological Forecasting and Social Change, 177, 121516.

    Google Scholar 

  • Dang, T. V., Wang, Y. A., & Wang, Z. G. (2022). The role of financial constraints in firm investment under pollution abatement regulation. Journal of Corporate Finance, 76, 102252.

    Google Scholar 

  • Deng, L., Jiang, P., Li, S. F., & Liao, M. Q. (2020). Government intervention and firm investment. Journal of Corporate Finance, 63, 101231.

    Google Scholar 

  • Dong, G., Ge, Y., Zhu, W., Qu, Y., & Zhang, W. (2021). Coupling coordination and spatiotemporal dynamic evolution between green urbanisation and green finance: A case study in China. Frontiers in Environmental Science, 8, 621846.

    Google Scholar 

  • Elia, S., Kafouros, M., & Buckley, P. J. (2020). The role of internationalisation in enhancing the innovation performance of Chinese Emnes: A geographic relational approach. Journal of International Management, 26(4), 100801.

    Google Scholar 

  • Fabrizi, A., Guarini, G., & Meliciani, V. (2018). Green patents, regulatory policies and research network policies. Research Policy, 47(06), 1018–1031.

    Google Scholar 

  • Flammer, C. (2021). Corporate green bonds. Journal of Financial Economics, 142(2), 499–516.

    Google Scholar 

  • Gao, Y. Q., Yang, H. B., & Hafsi, T. (2019). Corporate giving and corporate financial performance: The S-curve relationship. Asia Pacific Journal of Management, 36(03), 687–713.

    Google Scholar 

  • G20 Green Finance Study Group (2016). G20 green finance synthesis report 2016.

  • Guo, B., Liu, Y., & Wang, Z. (2019). Spatial effects of environmental regulation and green credits on green technology innovation under low-carbon economy background conditions. International Journal of Environmental Research and Public Health, 16(17), 3027.

    Google Scholar 

  • Guo, S. J., Zan, B. T., Sun, Y., & Zhang, M. L. (2020). Effects of top managers’ military experience on technological innovation in the transition economies of China. Technological Forecasting and Social Change, 153, 119909.

    Google Scholar 

  • Habib, M., & Zurawicki, L. (2002). Corruption and foreign direct investment. Journal of International Business Studies, 33(2), 291–307.

    Google Scholar 

  • He, G. J., Wang, S. D., & Zhang, B. (2020). Watering down environmental regulation in China. Quarterly Journal of Economics, 135(04), 2135–2185.

    Google Scholar 

  • Hou, C. E., Lu, W. M., & Hung, S. W. (2019). Does CSR matter? Influence of corporate social responsibility on corporate performance in the creative industry. Annals of Operations Research, 278(1–2), 255–279.

    Google Scholar 

  • Huang, B. H., Punzi, M. T., & Wu, Y. (2021). Do banks price environmental transition risks? Evidence from a quasi-natural experiment in China. Journal of Corporate Finance, 69, 101983.

    Google Scholar 

  • Huang, K. F., Lin, K. H., Wu, L. Y., & Yu, P. H. (2015). Absorptive capacity and autonomous R&D climate roles in firm innovation. Journal of Business Research, 68(1), 87–94.

    Google Scholar 

  • Irfan, M., Razzaq, A., Sharif, A., & Yang, X. D. (2022). Influence mechanism between green finance and green innovation: Exploring regional policy intervention effects in China. Technological Forecasting and Social Change, 182, 121882.

    Google Scholar 

  • Jaffe, A. B., & Palmer, K. (1997). Environmental regulation and innovation: A panel data study. The Review of Economics and Statistics, 79(4), 610–619.

    Google Scholar 

  • Jiang, Z. Y., Wang, Z. J., & Lan, X. (2021). How environmental regulations affect corporate innovation? The coupling mechanism of mandatory rules and voluntary management. Technology in Society, 65, 101575.

    Google Scholar 

  • Jiang, Z. Y., Wang, Z. J., & Zeng, Y. Q. (2020). Can voluntary environmental regulation promote corporate technological innovation? Business Strategy and the Environment, 29(02), 390–406.

    Google Scholar 

  • Jiao, H., Koo, C. K., & Cui, Y. (2015). Legal environment, government effectiveness and firms’ innovation in China: Examining the moderating influence of government ownership. Technological Forecasting and Social Change, 96, 15–24.

    Google Scholar 

  • Joo, H. Y., Seo, Y. W., & Min, H. (2018). Examining the effects of government intervention on the firm’s environmental and technological innovation capabilities and export performance. International Journal of Production Research, 56(18), 6090–6111.

    Google Scholar 

  • Kim, I., Pantzalis, C., & Zhang, Z. Y. (2022). Multinationality and the value of green innovation. Journal of Corporate Finance, 69, 101996.

    Google Scholar 

  • Koh, Y., & Lee, G. M. (2022). R&D shipbsidies in permissive and restrictive environment: Evidence from Korea. Research Policy, 52(01), 104620.

    Google Scholar 

  • Kumar, S., Sharma, D., Rao, S., Lim, W., & Mangla, S. K. (2022). Past, present, and future of sustainable finance: Insights from big data analytics through machine learning of scholarly research. Annals of Operations Research. https://doi.org/10.1007/s10479-022-04535-4

    Article  Google Scholar 

  • Lee, N., & Luca, D. (2019). The big-city bias in access to finance: Evidence from firm perceptions in almost 100 countries. Journal of Economic Geography, 19(1), 199–224.

    Google Scholar 

  • Li, J. Q., Shan, Y. W., Tian, G., & Hao, X. C. (2020a). Labor cost, government intervention, and corporate innovation: Evidence from China. Journal of Corporate Finance, 64, 101668.

    Google Scholar 

  • Li, P., Lu, Y., & Wang, J. (2016). Does flattening government improve economic performance? Evidence from China. Journal of Development Economics, 123, 18–37.

    Google Scholar 

  • Li, T., & Belal, A. (2018). Authoritarian state, global expansion and corporate social responsibility reporting: The narrative of a Chinese state-owned enterprise. Accounting Forum, 42(02), 199–217.

    Google Scholar 

  • Li, Y. N., Tong, Y., Ye, F., & Song, J. J. (2020). The choice of the government green subsidy scheme: Innovation subsidy vs. product subsidy. International Journal of Production Research, 58(16), 4932–4946.

    Google Scholar 

  • Lin, B. Q., Wu, W., & Song, M. L. (2019). Industry 4.0: Driving factors and impacts on firm’s performance: An empirical study on China’s manufacturing industry. Annals of Operations Research. https://doi.org/10.1007/s10479-019-03433-6

    Article  Google Scholar 

  • Lin, S. F., Xiao, L., & Wang, X. J. (2020). Does air pollution hinder technological innovation in China? A perspective of innovation value chain. Journal of Cleaner Production, 278, 123326.

    Google Scholar 

  • Lin, Y. J., Fu, X. Q., & Fu, X. L. (2021). Varieties in state capitalism and corporate innovation: Evidence from an emerging economy. Journal of Corporate Finance, 67, 101919.

    Google Scholar 

  • Liu, J. Y., Wang, Z. W., & Zhu, W. X. (2021a). Does privatisation reform alleviate ownership discrimination? Evidence from the Split-share structure reform in China. Journal of Financial Economics, 66, 101848.

    Google Scholar 

  • Liu, J. Y., Xia, Y., Fan, Y., Lin, S. M., & Wu, J. (2015). Assessment of a green credit policy aimed at energy-intensive industries in China based on a financial CGE model. Journal of Cleaner Production, 163, 293–302.

    Google Scholar 

  • Liu, S., Xu, R., & Chen, X. (2021b). Does green credit affect the green innovation performance of high-polluting and energy-intensive enterprises? Evidence from a quasi-natural experiment. Environmental Science and Pollution Research, 28, 1–13.

    Google Scholar 

  • Martinez-Sanchez, A., Vicente-Oliva, S., & Perez-Perez, M. (2020). The relationship between R&D, the absorptive capacity of knowledge, human resource flexibility and innovation: Mediator effects on industrial firms. Journal of Business Research, 118, 431–440.

    Google Scholar 

  • Musacchio, A., & Lazzarini, S. G. (2014). Reinventing state capitalism: Leviathan in business, Brazil and beyond. Harvard University Press.

    Google Scholar 

  • Nguyen, B. (2019). Entrepreneurial reinvestment: Local governance, ownership, and financing matter-evidence from Vietnam. Journal of Small Business Management, 57, 323–349.

    Google Scholar 

  • North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press.

    Google Scholar 

  • North, D. C. (1991). Institutions. Journal of Economic Perspectives, 5(1), 97–112.

    Google Scholar 

  • Pan, X. F., Ai, B. W., Li, C. Y., Pan, X. Y., & Yan, Y. B. (2017). Dynamic relationship among environmental regulation, technological innovation and energy efficiency based on large scale provincial panel data in China. Technological Forecasting and Social Change, 144, 428–435.

    Google Scholar 

  • Peng, M. W., Wang, D. Y. L., & Jiang, Y. (2008). An institutional-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies, 39, 920–936.

    Google Scholar 

  • Peters, B. (2009). Persistence of innovation: Stylised facts and panel data evidence. The Journal of Technology Transfer, 34, 226–243.

    Google Scholar 

  • Porter, M. E. (1992). Capital disadvantage: America’s failing capital investment system. Harvard Business Review, 70(5), 65–82.

    Google Scholar 

  • Powell, W.W. (1990). Neither market nor hierarchy: Network forms of organisation. In B. M. Staw, & L. L. Cummings (Eds.), Research in organisational behavior, (Vol. 12, pp. 295–336). JAI Press.

  • Ren, S. G., He, D. J., Yan, J., Zeng, H. X., & Tan, J. (2022). Environmental labeling certification and corporate environmental innovation: The moderating role of corporate ownership and local government intervention. Journal of Business Research, 140, 556–571.

    Google Scholar 

  • Ren, S. G., Hu, Y. C., Zheng, J. J., & Wang, Y. J. (2020). Emissions trading and firm innovation: Evidence from a natural experiment in China. Technological Forecasting and Social Change, 155, 119989.

    Google Scholar 

  • Scott, W. R. (1995). Institutions and organisations. Sage Publications.

    Google Scholar 

  • Shao, S., Hu, Z. G., Cao, J. H., Yang, L. L., & Guan, D. B. (2020). Environmental regulation and enterprise innovation: A review. Business Strategy and the Environment, 29(3), 1465–1478.

    Google Scholar 

  • Sheng, S. B., Zhou, K. Z., & Lessassy, L. (2012). NPD speed vs. innovativeness: The contingent impact of institutional and market environments. Journal of Business Research, 66(11), 2355–2362.

    Google Scholar 

  • Song, M. L., Tao, J., & Wang, S. H. (2015). FDI, technology spillovers and green innovation in China: Analysis based on data envelopment analysis. Annals of Operations Research, 228(1), 47–64.

    Google Scholar 

  • Song, M. L., Wang, S. H., & Zhang, H. Y. (2020). Could environmental regulation and R&D tax incentives affect green product innovation? Journal of Cleaner Production, 258, 120849.

    Google Scholar 

  • Sun, Y. H., Du, J. T., & Wang, S. H. (2020). Environmental regulations, enterprise productivity, and green technological progress: Large-scale data analysis in China. Annals of Operations Research, 290(1–2), 369–384.

    Google Scholar 

  • Veugelers, R. (2012). Which policy instruments to induce clean innovating? Research Policy, 41(10), 1770–1778.

    Google Scholar 

  • Wagner, M. (2007). On the relationship between environmental management, environmental innovation and patenting: Evidence from German manufacturing firms. Research Policy, 36(10), 1587–1602.

    Google Scholar 

  • Wang, C., Hong, J., Kafouros, M., & Wright, M. (2012). Exploring the role of government involvement in outward FDI from emerging economies. Journal of International Business Studies, 43, 655–676.

    Google Scholar 

  • Wang, N., & Hagedoorn, J. (2014). The lag structure of the relationship between patenting and internal R&D revisited. Research Policy, 43(8), 1275–1285.

    Google Scholar 

  • Wang, R., & Tan, J. L. (2020). Exploring the coupling and forecasting of financial development, technological innovation, and economic growth. Technological Forecasting and Social Change, 163, 120466.

    Google Scholar 

  • Wang, X. Y., & Wang, Q. (2021). Research on the impact of green finance on the upgrading of China’s regional industrial structure from the perspective of sustainable development. Resources Policy, 74, 102436.

    Google Scholar 

  • Wright, M., Filatotchev, I., Hoskisson, R. E., & Peng, M. W. (2005). Strategy research in emerging economies: Challenging the conventional wisdom—Introduction. Journal of Management Studies, 42(1), 1–33.

    Google Scholar 

  • Xiao, G., & Shen, S. C. (2022). To pollute or not to pollute: Political connections and corporate environmental performance. Journal of Corporate Finance, 74, 102214.

    Google Scholar 

  • Xie, Z. Z., & Li, J. T. (2013). Internationalization and indigenous technological efforts of emerging economy firms: The effect of multiple knowledge sources. Journal of International Management, 19(3), 247–259.

    Google Scholar 

  • Xing, C., Zhang, Y. M., & Tripe, D. (2021). Green credit policy and corporate access to bank loans in China: The role of environmental disclosure and green innovation. International Review of Financial Analysis, 77, 101838.

    Google Scholar 

  • Xu, Q. P., & Kim, T. (2022). Financial constraints and corporate environmental policies. Review of Financial Studies, 35(02), 576–635.

    Google Scholar 

  • Xu, X. K., & Li, J. S. (2020). Asymmetric impacts of the policy and development of green credit on the debt financing cost and maturity of different types of enterprises in China. Journal of Cleaner Production, 264, 121574.

    Google Scholar 

  • Yan, S. P., Almandoz, J., & Ferraro, F. (2021). The impact of logic (In)compatibility: Green investing, state policy, and corporate environmental performance. Administrative Science Quarterly, 66(04), 903–944.

    Google Scholar 

  • Yang, Q., Du, Q., Razzaq, A., & Shang, Y. F. (2021). How volatility in green financing, clean energy, and green economic practices derive sustainable performance through ESG indicators? A sectoral study of G7 countries. Resources Policy, 75, 102526.

    Google Scholar 

  • Yi, J. T., Murphree, M., Meng, S., & Li, S. L. (2021). The more the merrier? Chinese government R&D subsidies, dependence, and firm innovation performance. Journal of Product Innovation Management, 38(2), 289–310.

    Google Scholar 

  • Yin, X. L., & Xu, Z. R. (2022). An empirical analysis of the coupling and coordinative development of China’s green finance and economic growth. Resources Policy, 75, 102476.

    Google Scholar 

  • Yu, C. H., Wu, X. Q., Zhang, D. Y., Chen, S., & Zhao, J. S. (2021). Demand for green finance: Resolving financing constraints on green innovation in China. Energy Policy, 153, 112255.

    Google Scholar 

  • Zeng, W. P., Li, L., & Huang, Y. (2021). Industrial collaborative agglomeration, marketisation, and green innovation: Evidence from China’s provincial panel data. Journal of Cleaner Production, 279, 123598.

    Google Scholar 

  • Zhang, D. Y. (2021). Green credit regulation, induced R&D and green productivity: Revisiting the Porter Hypothesis. International Review of Financial Analysis, 75, 101723.

    Google Scholar 

  • Zhang, D. Y., Zhang, Z. W., & Managi, S. (2019). A bibliometric analysis on green finance: Current status, development, and future directions. Finance Research Letters, 29, 425–430.

    Google Scholar 

  • Zhang, H. Y., Geng, C. X., & Wei, J. H. (2022). Coordinated development between green finance and environmental performance in China: The spatial-temporal difference and driving factors. Journal of Cleaner Production, 346, 131150.

    Google Scholar 

  • Zhao, Y. T., & Xin, L. (2021). Research on green innovation countermeasures of supporting the circular economy to green finance under big data. Journal of Enterprise Information Management, 35(4–5), 1305–1322.

    Google Scholar 

  • Zhou, G. Y., Zhu, J. Y., & Luo, S. M. (2022). The impact of fintech innovation on green growth in China: Mediating effect of green finance. Ecological Economics, 193, 107308.

    Google Scholar 

  • Zhou, K. Z., Gao, G. Y., & Zhao, H. X. (2016). State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2), 375–404.

    Google Scholar 

Download references

Funding

This work was supported by the Project of China Social Science Foundation (Grant Number 22BJY041), the Project of China National Social Science Foundation (Grant Number 20BJY189), the Project of Zhejiang Provincial Social Science Foundation of China (Grant Number 21NDJC037YB), the Project of Zhejiang Provincial Soft Science Foundation of China (Grant Number 2022C35015), and the Project of China National Social Science Foundation (Grant Number 21BJY054). Zhejiang University of Technology, Humanities and Social Science Basic Research Expenses Project Interdisciplinary Research Project (Grant Number GB202303002).

Author information

Authors and Affiliations

  1. School of Economics, Zhejiang University of Technology, Hangzhou, China

    Tianle Yang, Zhennan Sun & Qunyang Du

  2. Institute for Industrial System Modernization, Zhejiang University of Technology, Hangzhou, China

    Qunyang Du

  3. The Business School, Edinburgh Napier University, Edinburgh, UK

    Min Du

  4. Nottingham University Business School China, University of Nottingham (China Campus), Ningbo, China

    Lei Li

  5. Léonard de Vinci Pôle Universitaire, Research Center, 92 916, Paris La Défense, France

    Fatima Shuwaikh

Authors
  1. Tianle Yang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Zhennan Sun
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Min Du
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Qunyang Du
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Lei Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  6. Fatima Shuwaikh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Qunyang Du.

Ethics declarations

Conflict of interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Ethical approval

This article does not contain any studies with human participants or animals performed by any of the authors.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendices

Appendix 1

Common trend test for the DID analysis

Figure 

Fig. 2
figure 2

Common trend chart

Full size image

2 shows that the innovation performance of both the experiment and control groups follows a similar trend before Chinese government publishing a series of influential national environmental policies, indicating that the quasi-natural experiment passes the common trend test.

Placebo test for the DID analysis

To test whether the baseline regression results are affected by omitted variables, random factors, and other factors, we conducted a placebo test of a random sampling. We randomly selected 600 firms from the sample pool to form a fictitious experimental group and examined the reliability of the results using the coefficients of the dummy variable of fictitious policies.

The results of the placebo test are consistent with the original DID analysis. To strengthen the effects of the placebo test, the process was repeated 500 times. Figure 

Fig. 3
figure 3

Kernel density diagram of coefficients and corresponding P values

Full size image

3 presents the distribution of the coefficients of the fictitious policy variables. The figure shows the results of the verification on whether the impact of the policy effect of environmental regulations and green finance on firms’ innovation vitality was interfered with by unobserved factors. As shown in Fig. 3, the coefficients of the independent variables are basically distributed near the value of zero after random processing, which signifies that there are no significant factors omitted in the baseline model. This means that the results of the regression mainly reflect the effects of regional environmental regulations and green finance policies.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Yang, T., Sun, Z., Du, M. et al. The impact of the degree of coupling coordination between green finance and environmental regulations on firms’ innovation performance: evidence from China. Ann Oper Res (2023). https://doi.org/10.1007/s10479-023-05704-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s10479-023-05704-9

Keywords

Search

Navigation