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Media coverage, Environment Protection Law and environmental research and development: evidence from the Chinese-listed firms

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Abstract

Environmental research and development (R&D) is an effective means to coordinate firms’ sustainable development and environmental protection. This study investigates the impact of media coverage on environmental R&D with the Environmental Protection Law’s exogenous shock in 2015 in China. The results show that both media coverage and the Environmental Protection Law significantly promote firms’ environmental R&D. Moreover, the Environmental Protection Law strengthens the positive effect of media coverage on firms’ environmental R&D, and the strengthening effect is more significant for firms with low internal control quality and in high-competition industry. Further researches suggest that environmental R&D fully mediates the relationship between media coverage and environmental technology innovation, while the Environment Protection Law has no significant effect on environmental technology innovation. The results demonstrate external supervision or regulations are conducive to environmental R&D, which conforms to Porter Hypothesis. This study has certain enlightening significance to firms’ environmental R&D, environmental technology innovation, and sustainable development in developing economies.

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Notes

  1. Readers can search for the following website to gain information in detail. http://www.gov.cn/gzdt/2008-07/07/content_1038083.htm.

  2. Readers can search for the following website to gain information in detail. https://baike.so.com/doc/3919909-4114044.html.

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Acknowledgements

The authors acknowledge the National Planning Office of Philosophy and Social Science of China (Award Number: 16BGL078), Guangdong Planning Office of Philosophy and Social Science (CN) (Award Number: GD17XGL36, GD15CGL12)

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  1. School of Accounting, Hangzhou Dianzi University, Hangzhou, Zhejiang, China

    Wunhong Su

  2. Business School, Shantou University, Shantou, Guangdong, China

    Chun Guo & Xiaobao Song

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  1. Wunhong Su
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Su, W., Guo, C. & Song, X. Media coverage, Environment Protection Law and environmental research and development: evidence from the Chinese-listed firms. Environ Dev Sustain 24, 6953–6983 (2022). https://doi.org/10.1007/s10668-021-01735-z

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