Article title: Does corporate environmental responsibility engagement

affect firm value? The mediating role of corporate innovation

Authors: Zhenghui Li, Gaoke Liao, Khaldoon Albitar

Journal name: Business Strategy and the Environment (SSCI)

Abstract:
This paper aims to construct a comprehensive corporate environmental
responsibility (CER) engagement measurement to examine the relationship
between CER engagement and firm value as well as explore the mediating
effect of corporate innovation on this relationship based on a sample of 496
China's A-share listed companies from 2008 to 2016. The results show that
when firms start to adopt environmental regulations, CER would have a
negative effect on firm value; however, at a specific level, CER would start
to enhance firm value positively. In addition to this, corporate innovation
plays a mediating role in the relationship between CER and firm value.
Corporate innovation promotes firm value of firms with CER more than
firms without CER. Overall, the findings of this paper are extremely relevant
for the government, investors, and firm's managers and can be utilized for
policy and investment decision making. Also, the findings encourage firms
to enhance their sense of environmental responsibility in order to enhance
their competitive advantages, enhance corporate innovation capabilities,
and thus enhance firm value.

Hypotheses
H1 1.CER is positively related to firm value.
H2 1.CER is positively related to corporate innovation.
H3 1.Corporate innovation mediates the relationship between CER and firm
value.
Regression model

Regression result table