Greater political pressure to improve corporate environmental performance and mitigate climate change impact leads firms to operate under greater political risk and uncertainty, affecting productivity and firm value. Using a panel of 3255 US firms from 2002 to 2020, this research tests the effectiveness of two environment-specific political risk (EPR) mitigation approaches: political lobbying and green innovation. The results suggest that while both approaches mitigate EPR of the current year, only green innovation reduces future EPR. By mitigating EPR, green innovation increases firm value to a greater degree than political lobbying. This study also shows that political lobbying has a larger effect on EPR mitigation for the leaders than the laggards in green innovation. The results are robust to alternative specifications of green innovation, political lobbying and potential endogeneity concerns. Overall, this study supports the value-enhancing role of green innovation as an effective political risk mitigation strategy.

中文翻译：

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针对特定环境的政治风险缓解：政治游说与绿色创新

改善企业环境绩效和减轻气候变化影响的更大政治压力导致企业在更大的政治风险和不确定性下运营，从而影响生产力和企业价值。本研究以 2002 年至 2020 年期间的 3255 家美国公司为样本，测试了两种特定环境政治风险 (EPR) 缓解方法的有效性：政治游说和绿色创新。结果表明，虽然两种方法都会降低当年的 EPR，但只有绿色创新才能降低未来的 EPR。通过减少 EPR，绿色创新比政治游说更大程度地增加了公司价值。这项研究还表明，在绿色创新方面，政治游说对领先者的 EPR 缓解影响大于落后者。结果对于绿色创新的替代规范是稳健的，政治游说和潜在的内生性担忧。总体而言，本研究支持绿色创新作为有效的政治风险缓解策略的增值作用。