Winning stakeholder support: Value creation through green-process innovation

Using a sample of Chinese listed firms in the manufacturing industry during 2009–2020, this study manually collects data on green-process innovation and explores its impact on corporate value. The empirical results show that green-process innovation positively affects corporate value. Moreover, the mediation analysis reveals that the positive impact of green-process innovation on corporate value stems from its effects on profitability, trade credit, labor productivity, and government recognition. Next, a cross-sectional analysis suggests that this value effect is more significant for firms located in areas with a more developed green credit market.