Environmental Regulation and Sustainable Growth of Enterprise Value: Mediating Effect Analysis Based on Technological Innovation

Abstract

This research aims to analyze the nonlinear relationship among environmental regulation, technology innovation and enterprise value and provide a micro level of enterprise view on environmental regulation. Taking 1714 A-share listed companies in China’s manufacturing industry from 2017 to 2020, a panel regression model was conducted to explore how environmental regulation influences enterprise value. The empirical research results show that: (1) the total effect of environmental regulation on enterprise value is U-shaped and that the technological innovation of enterprises has a partial intermediary effect between environmental regulation and enterprise value; (2) financial flexibility can significantly mitigate the impact of environmental regulations on enterprise value. This study provides a micro-level view of the influencing effect of environmental regulation on enterprise value.