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In this chapter, we examine the relationship between environmental innovation and the financial performance of Japanese firms by developing a novel measure of green innovation capability. The empirical results show a negative correlation between this capability and firm risk, suggesting that green innovation reduces the risk faced by firms.

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Green Innovation Capability and Financial Performance

  • 章节

  • 发表日期：

    2025年

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  • Megumi Suto,
  • Hitoshi Takehara

摘要

In this chapter, we examine the relationship between environmental innovation and the financial performance of Japanese firms by developing a novel measure of green innovation capability. The empirical results show a negative correlation between this capability and firm risk, suggesting that green innovation reduces the risk faced by firms.