Uncertainty and Green Innovation Nexus: The Moderating Influence of Ownership Structure and Product Market Competition.

Recently, there has been a growing interest among researchers, academics, and corporations regarding whether and how uncertainties influence corporate decision‐making. This study seeks to explore how various forms of uncertainty, including firm‐specific uncertainty (Fs_u), market‐based uncertainty (M_u), and economic policy uncertainty (Ep_u), influence corporate green innovation. This study also examines whether state ownership and product market competition moderate the relationship between uncertainty and green innovation. Using a sample of Chinese‐listed manufacturing firms from 2003 to 2020, the findings show that uncertainties (Fs_u, M_u, and Ep_u) negatively affect corporate green innovation. This negative effect is weakened by state ownership, whereas is strengthened by product market competition. The results remain consistent and valid following thorough robustness checks and additional analyses. This research contributes to real options theory by delineating how internal and external uncertainties impede green innovation. [ABSTRACT FROM AUTHOR]