Menu Expand

Financial constraints of firms with environmental innovation

  1. Journals
  2. Economics, Finance, Business & Management
  3. Vierteljahrshefte zur Wirtschaftsforschung
  4. Vol. 88, Issue 3
  5. pp. 43–65

JOURNAL ARTICLE

Cite JOURNAL ARTICLE

Style
Jensen, F., Schäfer, D., Stephan, A. Financial constraints of firms with environmental innovation. Vierteljahrshefte zur Wirtschaftsforschung, 88(3), 43-65. https://doi.org/10.3790/vjh.88.3.43
Jensen, Febi; Schäfer, Dorothea and Stephan, Andreas "Financial constraints of firms with environmental innovation" Vierteljahrshefte zur Wirtschaftsforschung 88.3, , 43-65. https://doi.org/10.3790/vjh.88.3.43
Jensen, Febi/Schäfer, Dorothea/Stephan, Andreas: Financial constraints of firms with environmental innovation, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 88, iss. 3, 43-65, [online] https://doi.org/10.3790/vjh.88.3.43
Format
Download

Financial constraints of firms with environmental innovation

Jensen, Febi | Schäfer, Dorothea | Stephan, Andreas

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 3 : pp. 43–65

7 Citations (CrossRef)

Read Now Download (PDF)

Additional Information

Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.88.3.43
Language
English
Pages
23
Keywords

Author Details

Febi Jensen, University of Gothenburg, School of Business, Economics and Law, Sweden, febi.caesara.jensen@gu.se

  • Febi Jensen, is a Ph.D. student in finance at the University of Gothenburg, School of Business, Economics and Law. She previously worked as a research assistant to Professor Andreas Stephan at Jönköping International Business School. Her main research interests include financial markets, green finance, and the intersection between corporate finance and economics of innovation. She holds a BSc in Economics and an MSc in Finance from Jönköping International Business School.
  • Search in Google Scholar

Dorothea Schäfer, DIW Berlin and Jönköping International Business School, Jönköping University, Sweden, dschaefer@diw.de

  • Dorothea Schäfer Research Director Financial Markets at the German Institute for Economic Research (DIW Berlin) and Adjunct Professor of Jönköping International Business School, Jönköping University; she is Editor-in-Chief of the Eurasian Economic Review (EAER) and the Vierteljahrshefte zurWirtschaftsforschung (Quarterly Journal of Economic Research); Head of various research projects, inter alia, funded by the German Science Foundation (Deutsche Forschungsgemeinschaft DFG) and the EU Commission. She was Evaluator/reviewer of research programs/proposals for theGerman Science Foundation, EUCommission, the Federal Ministry of Education and Research (BMBF) and the LOEWE (Initiative for the Development of Scientific and Economic Excellence). She has published in The European Journal of Finance, Finance Research Letters, Small Business Economics, the Journal of Financial Stability, the International Journal of Money and Finance, German Economic Review, Economics of Transition, the Journal of Comparative Economics, the Journal of Institutional and Theoretical Economics and many other journals. She is a co-organizer of the DIW Lectures on Money and Finance. Schäfer gave expert testimonies for the Finance Committee of the Deutsche Bundestag, for the Committee on Social Affairs, Health and Sustainable Development, Parliamentary Assembly, The Council of Europe and for the Commission on the Financing of the Nuclear Phase-out. She was a member of the Fortschrittsforum and an advisor to the Sub-Committee “Policy for a Sustainable Political and Economic Governance” (Nachhaltige Ordnungspolitik) of the Enquete “Committee of Growth – Prosperity – Quality of Life” (Wachstum Wohlstand Lebensqualität).
  • Email
  • Search in Google Scholar

Andreas Stephan, Jönköping International Business School, Jönköping University, Sweden and DIW Berlin, andreas.stephan@ju.se

  • Andreas Stephan is professor of Economics and Finance at Jönköping International Business School, Jönköping University, Sweden. He graduated with a MSc in Industrial Engineering from Technical University in Berlin and earned a Ph.D. in Economics at Humboldt University Berlin.He previously held positions at the Social Science Research Center Berlin (WZB), at the German Institute for Economic Research (DIW) and at the European University Viadrina. He is a research affiliate with CESIS – Centre of Excellence for Science and Innovation Studies at the Royal Institute of Technology in Stockholm and guest professor at the Linnaeus university, Sweden. His research interests are in the areas of Green finance, SME and startup finance, banking, regulation, asset pricing and financial markets. His research has been published in Research Policy, Journal of Public Economics, Economic Inquiry, European Journal of Political Economy, Industrial and Corporate Change, Journal of Comparative Economics, Kyklos, Public Choice, among others.
  • Email
  • Search in Google Scholar

Cited By

  1. The impact of public procurement on financial barriers to general and green innovation

    Schäfer, Dorothea | Stephan, Andreas | Fuhrmeister, Sören

    Small Business Economics, Vol. 62 (2024), Iss. 3 P.939

    https://doi.org/10.1007/s11187-023-00790-2 [Citations: 7]

  2. Small and medium sized European firms and energy saving measures: The role of financing

    Caporale, Guglielmo Maria | Donati, Cristiana | Spagnolo, Nicola

    Energy Policy, Vol. 179 (2023), Iss. P.113613

    https://doi.org/10.1016/j.enpol.2023.113613 [Citations: 6]

  3. Is interest rate hiking a recipe for missing several goals of monetary policy—beating inflation, preserving financial stability, and keeping up output growth?

    Schäfer, Dorothea | Semmler, Willi

    Eurasian Economic Review, Vol. 14 (2024), Iss. 2 P.235

    https://doi.org/10.1007/s40822-023-00256-6 [Citations: 0]

  4. Clean innovation, heterogeneous financing costs, and the optimal climate policy mix

    Campiglio, Emanuele | Spiganti, Alessandro | Wiskich, Anthony

    Journal of Environmental Economics and Management, Vol. (2024), Iss. P.103071

    https://doi.org/10.1016/j.jeem.2024.103071 [Citations: 0]

  5. Finanzmärkte, Arbeitsmärkte und Inflation – Beschleunigt die Zinspolitik der Zentralbank die Inflation und den Banken Crash?

    Schäfer, Dorothea | Semmler, Willi

    Vierteljahrshefte zur Wirtschaftsforschung, Vol. 92 (2023), Iss. 2 P.45

    https://doi.org/10.3790/vjh.92.2.45 [Citations: 0]

  6. How Does an Environmental Information Disclosure of a Buyer’s Enterprise Affect Green Technological Innovations of Sellers’ Enterprise?

    Zhang, Chenxi | Jin, Shanyue

    International Journal of Environmental Research and Public Health, Vol. 19 (2022), Iss. 22 P.14715

    https://doi.org/10.3390/ijerph192214715 [Citations: 7]

  7. Firms in Green Public Procurement: Financial Strength Indicators’ Impact on Contract Awards and Its Repercussion on Financial Strength

    Baum, Christopher F. | Kordestani, Arash | Schäfer, Dorothea | Stephan, Andreas

    Vierteljahrshefte zur Wirtschaftsforschung, Vol. 90 (2021), Iss. 4 P.71

    https://doi.org/10.3790/vjh.90.4.71 [Citations: 1]

References

  1. Aghion, P., R. Veugelers, D. Hemous et al. (2009): No green growth without innovation, Bruegel Policy Brief-2009/07.  Google Scholar
  2. Alliance, G. G. A. (2013): The green investment report: The ways and means to unlock private finance for green growth, in ‘World Economic Forum’.  Google Scholar
  3. Almeida, H., P.-H. Hsu, and D. Li (2013): Less is more: Financial constraints and innovative efficiency, Available at SSRN 1831786.  Google Scholar
  4. Bachelet, M. J., L. Becchetti, and S. Manfredonia (2019): The green bonds premium puzzle: The role of issuer characteristics and third-party verification, Sustainability 11(4), 1098.  Google Scholar
  5. Beck, T., A. Demirgüç-Kunt, L. Laeven, and V. Maksimovic (2006): The determinants of financing obstacles, Journal of International Money and Finance 25(6), 932 – 952.  Google Scholar
  6. Behrens, V., M. Berger, M. Hud, P. Hünermund, Y. Iferd, B. Peters, C. Rammer, and T. Schubert (2017): Innovation activities of firms in germany-results of the german cis 2012 and 2014: Background report on the surveys of the mannheim innovation panel conducted in the years 2013 to 2016, Technical report, ZEW-Dokumentation.  Google Scholar
  7. Brouillat, E. (2009): Recycling and extending product-life: an evolutionary modelling, Journal of Evolutionary Economics 19(3), 437 – 461.  Google Scholar
  8. Brown, J. R., G. Martinsson, and B. C. Petersen (2012): Do financing constraints matter for R&D?, European Economic Review 56(8), 1512 – 1529.  Google Scholar
  9. Cecere, G., N. Corrocher, C. Gossart, and M. Ozman (2014): Lock-in and path dependence: an evolutionary approach to eco-innovations, Journal of Evolutionary Economics 24(5), 1037 – 1065.  Google Scholar
  10. Cosci, S., V. Meliciani, and V. Sabato (2016): Relationship lending and innovation: empirical evidence on a sample of European firms, Economics of Innovation and New Technology 25(4), 335 – 357.  Google Scholar
  11. Czarnitzki, D., and H. Hottenrott (2011): R&d investment and financing constraints of small and medium-sized firms, Small Business Economics 36(1), 65 – 83.  Google Scholar
  12. De Marchi, V. (2012): Environmental innovation and r&d cooperation: Empirical evidence from spanish manufacturing firms, Research policy 41(3), 614 – 623.  Google Scholar
  13. Demary, M., J. Hornik, and G. Watfe (2016): SME financing in the EU: Moving beyond one-size-fits-all, IW-Reports 11/2016, Institut der deutschen Wirtschaft (IW)/German Economic Institute. https://ideas.repec.org/p/zbw/iwkrep/112016.html.  Google Scholar
  14. Doran, J., and G. Ryan (2016): The importance of the diverse drivers and types of environmental innovation for firm performance, Business strategy and the environment 25(2), 102 – 119.  Google Scholar
  15. Fazzari, S., R. G. Hubbard, and B. C. Petersen (1987): Financing constraints and corporate investment.  Google Scholar
  16. Ghisetti, C., S. Mancinelli, M. Mazzanti, and M. Zoli (2017): Financial barriers and environmental innovations: evidence from EU manufacturing firms, Climate Policy 17(sup1), pp. 131 – 147.  Google Scholar
  17. Hall, B. H. (2005): The financing of innovation, The Handbook of Technology and Innovation Management pp. 409 – 430.  Google Scholar
  18. Hall, B. H., P. Moncada-Paternò-Castello, S. Montresor, and A. Vezzani (2016): Financing constraints, R&D investments and innovative performances: new empirical evidence at the firm level for Europe.  Google Scholar
  19. Horbach, J. (2008): Determinants of environmental innovation – new evidence from german panel data sources, Research policy 37(1), 163 – 173.  Google Scholar
  20. Hottenrott, H., and B. Peters (2012): Innovative capability and financing constraints for innovation: more money, more innovation?, Review of Economics and Statistics 94(4), 1126 – 1142.  Google Scholar
  21. ING (2018): From sustainability to business value, Technical report.  Google Scholar
  22. Janssen, M. A., and W. Jager (2002): Stimulating diffusion of green products, Journal of Evolutionary Economics 12(3), 283 – 306.  Google Scholar
  23. Kemp, R., and V. Oltra (2011): Research insights and challenges on eco-innovation dynamics, Industry and Innovation 18(03), 249 – 253.  Google Scholar
  24. Kemp, R., and S. Pontoglio (2011): The innovation effects of environmental policy instruments – a typical case of the blind men and the elephant?, Ecological Economics 72, 28 – 36.  Google Scholar
  25. Lahr, H., and A. Mina (2013): Dynamic financial constraints and innovation: Evidence from the UK innovation surveys, in ‘European Conference on Corporate R&D and Innovation CONCORDi-2013 conference paper, Seville (Spain)’.  Google Scholar
  26. Lööf, H., A. Stephan, and F. Wulandari (2018): New ventures in cleantech: opportunities, capabilities and innovation outcomes’. Business Strategy and the Environment, forthcoming.  Google Scholar
  27. Mazzucato, M. (2015): Innovation systems: from fixing market failures to creating markets, Revista do Serviço Público 66(4), 627 – 640.  Google Scholar
  28. Myers, S. C., and N. S. Majluf (1984): Corporate financing and investment decisions when firms have information that investors do not have, Journal of financial economics 13(2), 187 – 221.  Google Scholar
  29. Olmos, L., S. Ruester, and S.-J. Liong (2012): On the selection of financing instruments to push the development of new technologies: Application to clean energy technologies, Energy Policy 43, 252 – 266.  Google Scholar
  30. Rammer, C., and B. Peters (2015): Dokumentation zur innovationserhebung 2014: Innovationen mit bezug zur energiewende, finanzierung von innovationen, Technical report, ZEW-Dokumentation.  Google Scholar
  31. Rammer, C., A. Schmiele et al. (2008): Globalisation of innovation in smes: why they go abroad and what they bring back home, Applied Economics Quarterly (formerly: Konjunkturpolitik) 59(Supplement), 173 – 212.  Google Scholar
  32. Rennings, K. (2000): Redefining innovation – eco-innovation research and the contribution from ecological economics, Ecological economics 32(2), 319 – 332.  Google Scholar
  33. Rennings, K., P. Markewitz, and S. Vögele (2013): How clean is clean? incremental versus radical technological change in coal-fired power plants, Journal of Evolutionary Economics 23(2), 331 – 355.  Google Scholar
  34. Roodman, D. (2011): Fitting fully observed recursive mixed-process models with cmp, Stata Journal 11(2), 159 – 206(48).  Google Scholar
  35. Schäfer, D., and R. Ketzler (2009): Drohende Finanzierungsklemme bei Innovationen: rechtzeitig entgegensteuern. Wochenbericht. 76. 772 – 783.  Google Scholar
  36. Schäfer, D., A. Stephan, and J. S. Mosquera (2017): Family ownership: does it matter for funding and success of corporate innovations?, Small Business Economics 48(4), 931 – 951. URL: https://doi.org/10.1007/s11187-016-9813-y.  Google Scholar
  37. Spengel, C., J. H. Heckemeyer, R. Bräutigam, K. Nicolay, O. Klar, and K. Stutzenberger (2016): The effects of tax reforms to address the debt-equity bias on the cost of capital and on effective tax rates, ZEW Expertises, ZEW – Leibniz Centre for European Economic Research, volume 65, number 148156. https://ideas.repec.org/b/zbw/zewexp/148156.html.  Google Scholar

Abstract

Summary: Using the Mannheim Innovation Panel, we explore whether Environmental Innovator Firms (EIFs) have higher financial needs and are more financially constrained than Non-Environmental Innovator firms (OIFs). We find that EIFs are more likely to have higher latent financial need in comparison to OIFs. This implies that EIFs have latent projects that they have not yet realized, but would implement if they had the financial means to do so. EIFs adopting environmental technologies have higher financial needs compared to firms that do not. One tentative conclusion from this finding is that public subsidies might mitigate the financial restrictions of environmental innovation.

Table of Contents

Section Title Page Action Price
Febi Jensen, Dorothea Schäfer, and Andreas Stephan: Financial constraints of firms with environmental innovation 43
Summary 43
Zusammenfassung 43
1 Introduction 44
2 Previous Studies on Environmental Innovation and Financing Constraints 45
3 Empirical Approach 46
3.1 Data and Variables 46
3.2 Econometric Estimations 49
3.3 Descriptive Results 50
3.4 Regression Analysis 43
4 Conclusions 44
References 44

Contact

Duncker & Humblot GmbH Carl-Heinrich-Becker-Weg 9 12165 Berlin, Deutschland T: +49 30 790006-0

Quick Navigation

2024 Duncker & Humblot GmbH

Powered by CloudPublish

We use cookies to ensure that you get the best experience on our website. Learn more about how we use cookies.