| Manufacturing industry with high economic contribution and high pollution is a key industry for China to achieve green development,and green innovation is an important way to achieve green development.However,compared to general innovation,green innovation is of great difficulty,complexity and uncertainty which requires supports and supervisions of relevant subjects.Institutional investors are one of the vital forces for China to carry out green finance,promote firms' green innovation and realize green development.Unlike previous studies focusing on the effect of institutional investors' shareholding,this paper focuses on the effect of institutional investors' research behavior.Research activities is an important measure for Chinese institutional investors to involve in corporate governance.Limited by data,there are few researches on institutional investors' research.This research investigates the effect of institutional investors' research on manufacturing firm's green innovation and its compositions using the dataset of China's manufacturing listed firms during 2012-2016.Furthermore,the internal channels of institutional investors' research on green innovation are verified.This research also focuses on the moderating effect of environmental regulation and firm scale on the relationship between institutional investors' research and green innovation.The findings of this paper are as follows:(1)The research of institutional investors significantly promote firms' green innovation,especially green product innovation.The effects of different types of institutional investors are heterogeneous.Only pressuresensitive institutional investors(insurance and insurance asset management companies)don't play a significant role in firm's green innovation,mainly because they play a passive role in supervision in order to maintain business relations.(2)This research confirms the internal channels of institutional investors through product market competition,and the finding supports lazy manager view rather than career concerns view.That is,institutional investors mainly promote green innovation by pressuring managers to reduce their lazy tendencies.(3)Firm scale positively moderate the positive relationship between institutional investors' research and green innovation.The regulating effect of environmental regulation is only statistically significant for firms facing more intense product market competition.The findings of this paper provide theoretical basis and policy references for guiding the coordination and cooperation of the Chinese government,institutional investors and firms to jointly improve the green innovation level of listed firms and achieve China's green development. |
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