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First‐mover advantages in green innovation—Opportunities and threats for financial performance: A longitudinal analysis
Author(s) -
Przychodzen Wojciech,
Leyvade la Hiz Dante I.,
Przychodzen Justyna
Publication year - 2019
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.1809
Subject(s) - competitor analysis , panel data , business , green innovation , stock market , industrial organization , stock (firearms) , marketing , accounting , economics , econometrics , mechanical engineering , paleontology , horse , engineering , biology
Although the analysis of the relation between green innovative activism and financial performance is a popular topic, the existing literature has rarely addressed the tangible benefits that companies may enjoy if they engage in green innovations more than their competitors. This study tries to fill the above gap on the basis of an empirical analysis of a panel data set of the Standard & Poor's 500 companies over the years 1999–2016. We find that high green innovative activism, measured by patent data, only harms current financial performance when not carried out in conjunction with other types of innovative activism. In addition, we find that being the most active in green innovation in absolute terms results in significant positive lagged gains in stock market valuations. However, too much concentration on green innovation relative to other types of innovative activism has a negative influence on both accounting and stock market performance.