Lessons from failure: Pollution blacklisting and firm's green innovation

• DOI: 10.1002/sd.2404
• Publication Date: 2022-09-12T05:59:36Z
• Authors: Li Liu; Lei Du; Xing Liu
• Keywords: Blacklisting; Bureaucracy

Abstract This article investigates the impact of pollution blacklisting on firm green innovation (GI) by a unique information disclosure project from 782 Chinese listed firms in heavily polluting industries during 2015–2019. Our research found that establishes poor environmental perception and puts under greater legitimacy pressure than their peers, forcing them to go beyond compliance through more substantial long‐term solutions like GI reestablish win social support again. For with high levels media coverage, positive effect is strengthened, while for bureaucratic political connections, weakened. The findings have important theoretical practical implications management relevant practice.