View in EDS

Green technology innovation and firm value: bidirectional causality with moderating effects.

Saved in:
Bibliographic Details
Title: Green technology innovation and firm value: bidirectional causality with moderating effects.
Authors: Qiao, Hongyu1 (AUTHOR), Li, Yi2 (AUTHOR), Deng, Jingjing3 (AUTHOR) djjheu@163.com
Source: Applied Economics. Nov2025, p1-17. 17p. 1 Illustration.
Subject Terms: *GREEN technology, *ENVIRONMENTAL regulations, *TECHNOLOGICAL innovations, *FINANCIAL technology, *ORGANIZATIONAL governance, ENTERPRISE value, MODERATION (Statistics), CAUSATION (Philosophy)
Abstract: Despite growing research interest, existing studies predominantly examine the green technology innovation-firm value relationship unidirectionally, overlooking potential bidirectional causality and contextual contingencies. Using simultaneous equations estimated by three-stage least squares on Chinese listed firms from 2008 to 2022, this study investigates the bidirectional relationship between green technology innovation and firm value, and how external factors (financial technology and environmental regulation) and internal factors (internal control quality and competitiveness) moderate these relationships. Results reveal that green technology innovation exhibits a U-shaped effect on firm value, with initial negative impacts that transition to positive effects as innovation intensity increases beyond a critical threshold. Second, firm value positively influences green technology innovation, establishing bidirectional causality that creates virtuous cycles. Third, financial technology, environmental regulation, internal control quality, and firm competitiveness play a positive moderating role in the reciprocal relationship between green technology innovation and firm value. These findings reveal bidirectional causality with nonlinear dynamics, offering insights on how firms can leverage green technology innovation for sustained value creation. [ABSTRACT FROM AUTHOR]
Copyright of Applied Economics is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Business Source Index
Description
Abstract:Despite growing research interest, existing studies predominantly examine the green technology innovation-firm value relationship unidirectionally, overlooking potential bidirectional causality and contextual contingencies. Using simultaneous equations estimated by three-stage least squares on Chinese listed firms from 2008 to 2022, this study investigates the bidirectional relationship between green technology innovation and firm value, and how external factors (financial technology and environmental regulation) and internal factors (internal control quality and competitiveness) moderate these relationships. Results reveal that green technology innovation exhibits a U-shaped effect on firm value, with initial negative impacts that transition to positive effects as innovation intensity increases beyond a critical threshold. Second, firm value positively influences green technology innovation, establishing bidirectional causality that creates virtuous cycles. Third, financial technology, environmental regulation, internal control quality, and firm competitiveness play a positive moderating role in the reciprocal relationship between green technology innovation and firm value. These findings reveal bidirectional causality with nonlinear dynamics, offering insights on how firms can leverage green technology innovation for sustained value creation. [ABSTRACT FROM AUTHOR]
ISSN:00036846
DOI:10.1080/00036846.2025.2593679