Green innovation and enterprise reputation value

Abstract Using the data of Chinese listed enterprises in 2007–2020, we investigate the relationship between green innovation (GI) and enterprise reputation via OLS regression, IV‐Lasso, and random forest. Findings show that GI can improve enterprise reputation, and it has a significant positive lag effect. Additionally, we compare the different effects of green patent applications and approved green patents. A possible mechanism is that GI reduces the pollution emission of enterprises. GI also performs better in improving the reputation of coastal enterprises, state‐owned enterprises and large‐scale enterprises, and old enterprises. Our finding on the causal relationship between GI and enterprise reputation is of great significance in further understanding the practical value of GI activities, and it has certain reference value for the policy formulation of governments and decision making of enterprises.