Research on the Deviation of Corporate Green Behaviour under Economic Policy Uncertainty Based on the Perspective of Green Technology Innovation in Chinese Listed Companies

Abstract

In the current context of economic transformation and a complex environment, increasing economic policy uncertainty may lead to deviations in corporate green behaviour, and it is particularly important to correct such deviations. On this basis, this paper empirically analyses the impact of economic policy uncertainty on corporate green behaviour bias based on statistical data of Chinese listed companies from 2007 to 2019. We find that economic policy uncertainty inhibits corporate green technology innovation but increases corporate innovation as a whole. Using the mechanism test, it was found that the internal inducement is mainly due to the prominent financing problems and limited development ability under the influence of uncertainty. After carrying out a heterogeneity test, it was found that economic policy uncertainty causes enterprises to deviate from green technology innovation more significantly in state-owned enterprises and protected industries, while this effect is significantly reduced when firms face fierce product market competition. Furthermore, strengthening executives’ power and implementing incentive mechanisms can more effectively correct the deviation. This study provides empirical evidence with which to strengthen corporate green innovation practices.