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The geographic peer effects and corporate green innovation
Wenxi Shen  1@  , Ping Wang  1@  , Thomas Kuo  1@  
1 : University of Birmingham [Birmingham]

This study investigates the geographic peer effects on green innovation activities using a large sample of U.S. public listed firms from 1974 to 2022. We provide strong evidence for the existence of geographic peer effects in green innovation. Specifically, the green innovation performance of firms within the same geographic region significantly affects the green innovation activities of focal firms. These findings remain valid under various robustness and endogeneity tests. Further analysis indicates that the influence is mainly attributed to regional backward culture, showing that the business managers are influenced by the backward regional management culture to seek personal gain by blindly investing in green innovations. Finally, our findings reveal that the geographic peer effects in green innovation do not enhance firms' financial performance.


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