Interoperability is new: investor relations management and corporate green innovation

Whether investors can become an effective market-oriented force is the key to cracking many difficulties in the process of green innovation. Using a sample of Chinese A-share listed companies from 2013 to 2022, this paper examines the relationship between investor relations management (IRM) and corporate green innovation. The results show that the level of IRM is positively associated with corporate green innovation. Among the different dimensions of IRM, web communication and communication feedback exhibit the most consistent positive associations, whereas the results for the other communication channels vary across model specifications. Further analysis reveals that IRM improves firms’ green innovation performance through information governance and supervision and management effects. In addition, the intensity of environmental regulation and the level of green finance can increase the linkage between IRM and green innovation; as complementary stakeholders, customer and supplier characteristics encroach on the space for IRM to exert green innovation effects. Finally, IRM enhances both green and non-green innovation performance as well as firm value and market returns. This paper discusses the green innovation effect of IRM in depth and provides empirical data and relevant insights for firms to promote green innovation and strengthen investor protection from the perspective of internal governance mechanisms.