This study aims to explore the influence of time-honored brand (THB) culture on corporate green transformation.
We manually collect data on THB culture from Chinese listed firms during the period of 2010–2019 to explore the relationship between THB culture and corporate green transition. To account for any potential endogenous issues, we conduct a series of robustness tests including difference-in-differences (DID) and PSM-DID analysis, as well as instrumental variable (IV) regression.
We find that THB culture significantly promotes corporate green innovation. Heterogeneity analysis indicates that this positive effect is more pronounced in firms located in regions with higher social trust, operating in less competitive industries, those that are non-family-owned, large-scale, and led by older chairmen. Further channel analysis shows that THB culture promotes corporate green innovation by enhancing corporate reputation, trade credit, and organizational inclusiveness.
The findings of this study identify an important internal driver of corporate green innovation and provide new insights into corporate green transformation and sustainable development in transition economy.
