Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence
Green innovation is a costly and risky process that enables firms to improve their energy efficiency and maintain sustainable growth. In this study, we investigate whether cross-listing shares in developed markets encourages firms from developing markets to engage in green innovation. By analyzing a...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-03-01
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| Series: | Borsa Istanbul Review |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845025000109 |
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| author | Xin Xiang Xu He |
| author_facet | Xin Xiang Xu He |
| author_sort | Xin Xiang |
| collection | DOAJ |
| description | Green innovation is a costly and risky process that enables firms to improve their energy efficiency and maintain sustainable growth. In this study, we investigate whether cross-listing shares in developed markets encourages firms from developing markets to engage in green innovation. By analyzing a sample of firms that are simultaneously listed on the Chinese A-share market and the Hong Kong Stock Exchange, the study finds that cross-listed firms have more green patent applications, patent grants, and citations than non-cross-listed firms. The transmission mechanisms suggest that cross-listed firms are motivated by foreign investors’ expectations of sustainable growth to engage in green innovation. Furthermore, in developed capital markets, high-quality firms can receive capital at low costs and use it to support valuable green innovation. As a result, cross-listed firms demonstrate better environmental performance after cross-listing, and green innovation products (patents) enable cross-listed firms to improve their financial performance. Overall, we establish a relationship between cross-listing and green innovation and highlight a new factor that leads firms to undertake valuable green innovation. |
| format | Article |
| id | doaj-art-06f3e116a0ff4ac9bcf3237035b9e23f |
| institution | DOAJ |
| issn | 2214-8450 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj-art-06f3e116a0ff4ac9bcf3237035b9e23f2025-08-20T02:45:56ZengElsevierBorsa Istanbul Review2214-84502025-03-0125232333610.1016/j.bir.2025.01.003Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidenceXin Xiang0Xu He1Faculty of Business, Macao Polytechnic University, Macao Special Administrative Region of ChinaSchool of Finance & Investment, Guangdong University of Finance, Tianhe Qu Yinglong Road, Guangzhou, Guangdong, China; Corresponding author.Green innovation is a costly and risky process that enables firms to improve their energy efficiency and maintain sustainable growth. In this study, we investigate whether cross-listing shares in developed markets encourages firms from developing markets to engage in green innovation. By analyzing a sample of firms that are simultaneously listed on the Chinese A-share market and the Hong Kong Stock Exchange, the study finds that cross-listed firms have more green patent applications, patent grants, and citations than non-cross-listed firms. The transmission mechanisms suggest that cross-listed firms are motivated by foreign investors’ expectations of sustainable growth to engage in green innovation. Furthermore, in developed capital markets, high-quality firms can receive capital at low costs and use it to support valuable green innovation. As a result, cross-listed firms demonstrate better environmental performance after cross-listing, and green innovation products (patents) enable cross-listed firms to improve their financial performance. Overall, we establish a relationship between cross-listing and green innovation and highlight a new factor that leads firms to undertake valuable green innovation.http://www.sciencedirect.com/science/article/pii/S2214845025000109G14G31G32 |
| spellingShingle | Xin Xiang Xu He Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence Borsa Istanbul Review G14 G31 G32 |
| title | Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence |
| title_full | Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence |
| title_fullStr | Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence |
| title_full_unstemmed | Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence |
| title_short | Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence |
| title_sort | does cross listing on the hong kong stock exchange affect chinese firms green innovation new evidence |
| topic | G14 G31 G32 |
| url | http://www.sciencedirect.com/science/article/pii/S2214845025000109 |
| work_keys_str_mv | AT xinxiang doescrosslistingonthehongkongstockexchangeaffectchinesefirmsgreeninnovationnewevidence AT xuhe doescrosslistingonthehongkongstockexchangeaffectchinesefirmsgreeninnovationnewevidence |