TY - JOUR
T1 - Navigating climate policy uncertainty
T2 - Impacts on continuous innovation in corporations
AU - Ling, Shixian
AU - Xia, Hui
AU - Liu, Zhangxin (Frank)
AU - Treepongkaruna, Sirimon
AU - Haroon, Samara
N1 - Publisher Copyright:
© 2024 Elsevier Inc.
PY - 2025/1
Y1 - 2025/1
N2 - We explore the impact of Climate Policy Uncertainty (CPU) on continuous innovation within enterprises amid the escalating challenges of climate change. By applying textual analysis to quantify CPU in China, our findings reveal a significant positive relationship between CPU and continuous innovation. CPU emerges as a significant driver of continuous innovation, which holds up against various robustness and endogeneity checks. Specifically, CPU fosters innovation by promoting greater international diversity on boards and reducing inefficient investments. Our paper highlights the strategic importance of embracing policy-induced uncertainty as an opportunity for advancing innovation and green transformation.
AB - We explore the impact of Climate Policy Uncertainty (CPU) on continuous innovation within enterprises amid the escalating challenges of climate change. By applying textual analysis to quantify CPU in China, our findings reveal a significant positive relationship between CPU and continuous innovation. CPU emerges as a significant driver of continuous innovation, which holds up against various robustness and endogeneity checks. Specifically, CPU fosters innovation by promoting greater international diversity on boards and reducing inefficient investments. Our paper highlights the strategic importance of embracing policy-induced uncertainty as an opportunity for advancing innovation and green transformation.
KW - Climate policy uncertainty
KW - Continuous innovation
KW - Green transformation
UR - http://www.scopus.com/inward/record.url?scp=85209240405&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2024.106436
DO - 10.1016/j.frl.2024.106436
M3 - Article
AN - SCOPUS:85209240405
SN - 1544-6123
VL - 71
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 106436
ER -