Xin Pan

This paper investigates how analyst categorisation hierarchies (CH) affect corporate social responsibility (CSR) conformity. We argue that firms that are labelled as either high rank or low rank by analysts have higher institutional immunity, while firms that are categorised as middle rank have lower immunity. These heterogeneous institutional immunities will affect the levels of CSR conformity differently. Our results, which originate from a sample of Chinese listed firms from 2009 to 2016, suggest that CH exhibit an inverted‐U‐shaped relationship with CSR conformity. High‐ranked and low‐ranked firms are most likely to be CSR nonconformist, while middle‐ranked firms tend to conduct CSR like the majority of their industry peers. Moreover, we also investigate the environmental boundary conditions of this curvilinear relationship. This relationship is moderated by environmental munificence (positively) and dynamism (negatively). Our findings fill the theoretical gap by proposing an institutional‐based explanation for the CSR conformity heterogeneity which is rarely discussed and extending the boundary conditions for the categorisation‐CSR conformity relationship.

This study investigated how firms respond to conflicting demands within the state. Using Chinese listed firms data, we found that firms linked with central government relate positively to environmental innovation, while firms located in provinces with gross domestic product (GDP) priority exhibited a negative influence on environmental innovation. Beyond the independent roles of central and local government expectations, we found that central and local government demands work interdependently to negatively affect firms’ environmental innovation, such that firms located in GDP priority regions lower the positive impact of the central government on environmental innovation. The present study added to the existing literature by unpacking government roles into two competing sets of expectations, independently and interdependently.

This research scrutinises the correlation between state ownership and the attributes of green innovation, specifically underscoring generality as a primary trait of innovation favoured by governments. Green innovation with generality, due to its applicability across diverse contexts at reduced expense, becomes an appealing strategy for states to address environmental concerns. Consequently, we suggest that state ownership encourages the prevalence of green innovation characterised by generality. Furthermore, we delve into two contingencies related to ascribed and achieved political connections, positing that they, respectively, impose negative and positive moderating influences. Support for our propositions comes from data gathered from Chinese listed firms during the period 2004–2019. By emphasising the importance of green innovation characteristics over their quantity, our research offers a significant contribution to the literature on green innovation in the context of state ownership.