Does cross-listing on the Hong Kong stock exchange affect Chinese firms' green innovation? : new evidence
Xin Xiang, Xu He
Green innovation is a costly and risky process that enables firms to improve their energy efficiency and maintain sustainable growth. In this study, we investigate whether cross-listing shares in developed markets encourages firms from developing markets to engage in green innovation. By analyzing a sample of firms that are simultaneously listed on the Chinese A-share market and the Hong Kong Stock Exchange, the study finds that cross-listed firms have more green patent applications, patent grants, and citations than non-cross-listed firms. The transmission mechanisms suggest that cross-listed firms are motivated by foreign investors' expectations of sustainable growth to engage in green innovation. Furthermore, in developed capital markets, high-quality firms can receive capital at low costs and use it to support valuable green innovation. As a result, cross-listed firms demonstrate better environmental performance after cross-listing, and green innovation products (patents) enable cross-listed firms to improve their financial performance. Overall, we establish a relationship between cross-listing and green innovation and highlight a new factor that leads firms to undertake valuable green innovation.
Year of publication: |
2025
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Authors: | Xin, Xiang ; He, Xu |
Published in: |
Borsa Istanbul Review. - Amsterdam [u.a.] : Elsevier, ISSN 2214-8450, ZDB-ID 2745445-9. - Vol. 25.2025, 2, p. 323-336
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Subject: | Cross-listing | Green innovation | Stock price informativeness | Financing advantage | Hongkong | Hong Kong | Börsenkurs | Share price | Zweitlisting | Dual listing | China | Innovation | Aktienmarkt | Stock market | Börsenhandel | Stock exchange trading |
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Type of publication: | Article |
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Type of publication (narrower categories): | Aufsatz in Zeitschrift ; Article in journal |
Language: | English |
Other identifiers: | 10.1016/j.bir.2025.01.003 [DOI] |
Classification: | G14 - Information and Market Efficiency; Event Studies ; G31 - Capital Budgeting; Investment Policy ; G32 - Financing Policy; Capital and Ownership Structure |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10015337368
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