Green Product Certification and corporate green innovation: Moderating effects of media attention and ESG performance

Green innovation represents a positive outcome of corporate engagement in environmental regulations, yet existing literature presents inconsistent findings regarding the impact of voluntary environmental regulations (VER) on green innovation, with the validity of VER remaining controversial in developing countries. As a voluntary regulation that has not been thoroughly examined, the question of whether Green Product Certification (GPC) can stimulate corporate green innovation remains an open issue in the field of environmental regulation. Drawing upon a panel dataset of 7,645 observations from A-share listed companies in Shanghai and Shenzhen Stock Exchanges spanning 2015-2022, this study empirically demonstrates that corporate participation in GPC and subsequent acquisition of valid certificates significantly fosters green innovation. This positive effect is particularly pronounced among firms with higher media attention and better ESG performance. The findings remain robust after rigorous robustness checks and endogeneity tests. This discovery not only validates the applicability of the Porter hypothesis and stakeholder theory in the context of China's VER but also offers a novel perspective and evidence for deepening the understanding of the relationship between GPC and corporate green innovation. It holds significant theoretical and practical implications for advancing corporate green and sustainable development.