The Impact of Political Connections on Corporate Green Innovation: The Mediating Effect of Corporate Social Responsibility and the Moderating Effect of Environmental Public Opinion

The construction industry is the lifeblood of the national economy; thereby, to some extent, the green transformation of the construction industry is representative of the industrialization levels of modern construction, especially in China. Based on the panel data of A-share listed companies in China's construction industry from 2014 to 2019, this work studies the influence mechanism of political connection on corporate green innovation by establishing a multiple regression model, analyzes the realization path of corporate social responsibility as an mediating variable on the impact of political connections on corporate green innovation, and reveals the role boundary of environmental public opinion as a moderating variable on the impact of political connections on corporate green innovation. The results show that political connection has a significant positive impact on corporate green innovation, and this impact exists in both state-owned and non-state-owned enterprises, as well as in the eastern region and the central and western regions of China. Moreover, corporate social responsibility plays a partial mediating role in the relationship between political connection and corporate green innovation, and serves as an effective value transfer intermediary, a benefit balance mechanism, and a risk avoidance method. Political connections urge enterprises to be more socially responsible, thus affecting green innovation. Additionally, environmental public opinion strengthens the positive impact of political connections on corporate green innovation, especially in non-state-owned enterprises and in the eastern regions with a higher degree of marketization. The research conclusions provide a new theoretical reference for promoting the transformation of green innovation and achieving high-quality development in the construction industry.