A study on environmental regulations, CVC investments, green innovation and firm value

  • Andreia Faria (Student)

Student thesis: Master's Thesis

Abstract

Striving for sustainable corporate practices, this paper investigates the intricate relationships between environmental regulations, green CVC investments, green innovation and firm value. Analysing a sample of 92 US firms over 21 years (2000-2020), we extract meaningful insights into the underlying dynamics of these variables. The findings indicate that environmental regulations and green CVC deals have a positive effect on green innovation. Additionally, stringent environmental regulations significantly enhance the impact of green CVC deals on the quantity (Count) and quality (Citation) of green innovation. Furthermore, the results indicate that higher levels of green innovation and green CVC investments lead to increased firm value. A novel contribution of this research is the evidence that the impact of green CVC deals on firm value becomes stronger in the presence of green innovation. These findings have important implications for research and practice, highlighting the importance for firms of adopting sustainable practices to create competitive advantage. Moreover, this research offers valuable insights for policymakers, enabling them to develop precise regulations that promote environmentally friendly investments, thereby fostering green innovation.
Date of Award22 Jan 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorFátima Shuwaikh (Supervisor)

Keywords

  • Corporate venture capital
  • Environmental regulations
  • Firm value
  • Green innovation

Designation

  • Mestrado em Finanças

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