Low-carbon Management, Internal Control, and Innovation of State-owned Enterprises in China

Purpose Innovation is key for state-owned enterprises to realize the optimization;adjustment;and upgrading of their industrial structure. Both government supervision and internal control could impact the implementation of innovation strategies of state-owned enterprises. We empirically tested low carbon operations management and the role of internal control systems in state-owned enterprise innovation;as well as influence mechanisms. Design/Methodology/Approach This paper takes State-owned A-share listed enterprises in the Shanghai and Shenzhen stock exchanges from 2009 to 2017 as research panel data;and based on corporate governance theory constructs fixed effects models;and conducts analysis using SAS9.4 software for empirical research. Findings We found a significant positive correlation between internal control and state-owned enterprise innovation;which can improve input intensity and effectively guarantee the innovation output. There is a significant positive correlation between low-carbon management and innovation of state-owned enterprises which can improve the intensity of innovation input and significantly promote innovation output. Research Implications Our results reveal that low carbon operations have a regulating effect on the relationship between internal control and state-owned enterprise innovation. Under the environment of low-carbon management;enterprises can perfect the supervision mechanism of their internal control system and improve their innovation ability.