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Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation

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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.
Original languageEnglish
Pages (from-to)1045-1055
Number of pages11
JournalBusiness Strategy and the Environment
Issue number3
Early online date18 Nov 2019
Publication statusPublished - Mar 2020


  • Main Text 3 (1)

    Rights statement: This is the peer reviewed version of the following article: i, Z, Liao, G, Albitar, K. Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation. Bus Strat Env. 2019; 1– 11, which has been published in final form at: This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

    Accepted author manuscript (Post-print), 416 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 19/11/21

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