Abstract
Technological innovation activities are the most effective way to achieve corporate leapfrog development. Based on the Porter effect theory, this paper uses panel data on Chinese manufacturing firms from 2015 to 2018 to construct two-way fixed effects and threshold effects models to explore the impact mechanism of research and development (R&D) investment on corporate total factor productivity (CTFP) under heterogeneous environmental regulations. Baseline regression results indicate that R&D investment significantly promotes CTFP. Meanwhile, we also test the robustness of baseline regression results by replacing the dependent variable, shortening the time windows and adding omitted variables. Moreover, heterogeneity analyses indicate that the contribution of R&D investment to CTFP is more significant in the subgroup regressions of non-SOEs, CEO-dual enterprises and non-heavily polluting enterprises. Economic consequence analysis shows that R&D investment contributes to green innovation performance, financial performance and corporate social responsibility performance by increasing CTFP. Additionally, there is heterogeneity in the moderating effects of market-incentivized environmental regulation (MER), command-and-control environmental regulation (CER) and public participation environmental regulation (PER). MER and PER have moderated mediating effects, but CER does not have a moderated mediating effect. Extended analysis shows that according to the threshold effect test findings, two thresholds exist for MER and one threshold each for PER and CER in the relationship between R&D investment and CTFP. Our findings have important implications in that the government should adopt differentiated environmental regulation policies to support companies in actively carrying out innovation activities, thereby promoting high-quality development.
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Acknowledgements
The authors want to thank our editor and reviewers for their valuable comments and advice. The authors also want to acknowledge China Scholarship Council and the contribution of Professor Boris I. Sokolov to this paper.
Funding
This research was funded by the China Scholarship Council (Grant Nos. 202008090357, 202210280044, 202210280022, 202008090178).
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Xiaowei Ding: conceptualization, investigation, methodology, formal analysis, data curation, writing—original draft, and writing—review and editing and corresponding author. Yaqiong Zhang and Yongguang Fu contributed equally to this work: supervision, visualization, validation, and writing—review and editing. Zhenpeng Xu: conceptualization, supervision, and writing—review and editing. All the authors provided critical feedback and helped shape the research, analysis, and manuscript.
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Ding, X., Zhang, Y., Fu, Y. et al. R&D investment and corporate total factor productivity under the heterogeneous environmental regulations: evidence from Chinese micro firms. Int. J. Environ. Sci. Technol. (2024). https://doi.org/10.1007/s13762-024-05710-9
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DOI: https://doi.org/10.1007/s13762-024-05710-9
Keywords
- Environmental regulation constraints
- Research and development investment
- Corporate total factor productivity
- Impact mechanism
- Moderated mediating effect
- Threshold effect