Capital Market Liberalization, Stock Price, and Corporate Green Innovation

A Quasi-Experiment of Shanghai-Hong Kong Stock Connect

Bibliographic Data

ID16912959
AuthorsWan Ying-lin (Beijing University of Posts and Telecommunications, corresponding author), Jia Jiu-lu (Beijing University of Posts and Telecommunications), Fu Jia-cheng (Politecnico di Milano)
Year2025
Volume15
Issue3
Publication date2025-01-01
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440251342476
OpenAlexW4412468488
LanguageEN
References cited46

This study uses the Shanghai-Hong Kong Stock Connect as a quasi-natural experiment to explore how capital market liberalization affects green innovation in China’s A-share listed firms. The findings show that the Stock Connect stimulates independent but not cooperative green innovation. This effect is driven by active investor governance and, to a lesser extent, the threat of investor exit, with the former having a more substantial positive influence. The impact is more pronounced in firms located in regions with more robust legal systems and better corporate governance. Capital market liberalization boosts firms’ motivation and capacity for green innovation, providing valuable insights for policymaking and the continued development of liberalized capital markets

Business · Economics · Financial economics · Financial system · Geography · Liberalization · Market economy · Monetary economics · Stock market · Stock price · Corporate Social Responsibility Reporting · Energy, Environment, Economic Growth · Market Dynamics and Volatility

Tools

Open DOIOpen Access