Do Green Investors Advance Green Innovation? Evidence from China

Seminar abstract

Sustainability issues overwhelm policymaking as well as the life of many individuals. This paper investigates whether key capital market players, institutional investors, can facilitate green innovation among firms in which they invest. Leveraging Chinese firms’ data on green innovation, we find that Chinese mutual fund investors who are committed to green investment increase their portfolio companies’ green innovation. Effectiveness as to whether a firm can make the most of the positive influence of green investment moderates the firm’s environmental innovativeness, as reflected in a firm’s ownership status, governance condition and institutional environment. Further analysis reveals that green investment has a stronger impact on green innovation when green investors are highly reputable, actively engage with portfolio firms, and managed by a woman. Finally, we find that when backed by green investment, firms with better green innovation have better financial and environmental performance. Our results unveil some of the real implications of green investment in tackling imminent environmental issues.

How to attend this seminar

This seminar is free to attend with no need to register in advance.

We welcome you to join us online on Wednesday 25 January 2023 at 2pm.

Speaker bio

Professor Michel Magnan

Michel is Distinguished University Research Professor of Accountancy as well as Stephen A. Jarislowsky Chair in Corporate Governance at the John Molson School of Business of Concordia University (Montreal, Canada). He holds a Ph.D. from the University of Washington. His research interests encompass corporate governance, financial reporting, corporate social responsibility and corporate disclosure. He is also a Chartered Professional Accountant and a Charted Director and is extensively involved in the academic, business and professional communities.