The impact of environmental tournaments on green innovation: a natural experiment utilizing natural resources assets off-office audit policy
摘要
The economic tournament model has significantly contributed to rapid economic growth. Does the natural resources assets off-office audit policy (NRAOA for short), which incorporates natural resource audit evaluation, rewards, punishments and accountability into officials’ careers, and adjusts the incentives of the previous political promotion tournament model, affect corporate green innovation? This issue is both significant and intriguing, yet it remains underexplored in existing research. To verify this question, this study employs the NRAOA as a natural experiment and utilizes the difference-in-differences (DID) approach to conduct empirical tests focusing on A-share companies in China from 2012 to 2017. The results show a significant enhancement of green innovation among enterprises due to NRAOA, indicating a promotion effect. Mechanism tests demonstrate that NRAOA promotes green innovation through heightening environmental concern and improving environmental management level. According to heterogeneity analyses, NRAOA’s influence on corporate green innovation is more prominent, in cities with lower fiscal pressure, among enterprises with higher environmental recognition, taking environmental protection measures and producing environmentally-friendly products. In conclusion, NRAOA substantially boosts corporate green innovation. Therefore, scientific and rational environmental policies can encourage the passion for environmental protection among local politicians and enhance the effectiveness of environmental governance. Local governments should improve their environmental management capabilities and leverage the supervisory roles of the media and the general public. Firms should focus on their long-term interests when making financial decisions and strive to achieve green transformation.