Green Inquiry Letter and Corporate Green Innovation

As a form of non-punitive regulatory policy, the inquiry letter has garnered significant attention from academic circles. However, its impact on corporate green innovation has not been fully explored. This study aims to address this gap by examining the influence of green inquiry letters (hereinafter referred to as "green inquiry letters") on corporate green innovation activities based on data from listed companies spanning 2015 to 2022. The findings indicate that green inquiry letters issued by the exchange can effectively promote the green innovation of enterprises, and this conclusion holds true even after conducting a series of robustness tests. Furthermore, in regions with higher levels of pollution and increased public concern, the impact of green inquiry letters is particularly pronounced. Mechanism analysis reveals that green inquiry letters lead to a significant increase in both pollution charges and negative news coverage for enterprises, thereby facilitating their transition towards environmentally-friendly practices. Overall, it is evident that green inquiry letters stimulate green innovation by heightening regulatory pressure and non-compliance costs faced by companies. This underscores the crucial role played by these letters in enterprise supervision and provides valuable insights for enhancing securities market regulation mechanisms.