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Financial Innovation

Table 16 Moderating effect of green technology innovation on the relationship between environmental performance and excess stock returns

From: Excess stock returns and corporate environmental performance in China

 

(1)

(2)

LOGGREEN

0.004**

0.004***

(2.49)

(2.72)

L.PATENT

− 0.004**

− 0.005**

(− 2.15)

− 2.03)

L.PATENT*LOGGREEN

0.001**

0.001**

(2.47)

(2.32)

Constant

− 0.132***

− 0.096***

(− 13.40)

(− 8.50)

Control

Y

Y

Industry fixed effects

N

Y

Year/month fixed effects

Y

Y

Observations

116,238

116,238

Adjusted R2

0.4609

0.4618

  1. This table reports the results for the regression tests of the moderating effect of green technology innovation (PATENT) on the relationship between environmental performance (LOGGREEN) and excess stock returns (RET) with controls and robust standard errors clustered at the firm level. The sample period is March 2014 to October 2018, and the unit of observation is a month. PATENT is the number of green patent applications from the CSMAR database. All other variables are defined in Table 2. Both regressions include year-month fixed effects, and column (2) also includes industry fixed effects. *, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively
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