{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,28]],"date-time":"2026-04-28T22:12:08Z","timestamp":1777414328019,"version":"3.51.4"},"reference-count":67,"publisher":"MDPI AG","issue":"7","license":[{"start":{"date-parts":[[2025,7,9]],"date-time":"2025-07-09T00:00:00Z","timestamp":1752019200000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Systems"],"abstract":"<jats:p>Climate change and environmental degradation necessitate green innovation (GI) to provide new solutions for sustainable economic growth. As many firms allocate scarce resources to green innovation, researchers, practitioners, and policymakers are keen to understand information disclosure on green innovation, particularly in company financial statements. This study empirically investigates the relationship between GI and conservative financial reporting. Using a dataset of 8945 unique firms, from 2001 to 2024, we discover a negative relationship between GI and conservative financial reporting. We further document that firms with high exposure to climate change exhibit a more pronounced negative relationship between GI and conservative financial reporting. In addition, we find that the presence of regulatory risks and public awareness, particularly after the adoption of the Paris Agreement, weakens the negative association between GI and conservative financial reporting. Our findings shed further light on information disclosure on green innovation, which is crucial for various stakeholders to utilize such information and make relevant decisions.<\/jats:p>","DOI":"10.3390\/systems13070561","type":"journal-article","created":{"date-parts":[[2025,7,11]],"date-time":"2025-07-11T11:26:37Z","timestamp":1752233197000},"page":"561","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":2,"title":["Green Innovation and Conservative Financial Reporting: Empirical Evidence from U.S. Firms"],"prefix":"10.3390","volume":"13","author":[{"given":"Desheng","family":"Yin","sequence":"first","affiliation":[{"name":"School of Economics and Management, East China Normal University, 3663 N. Zhongshan Road, Shanghai 200062, China"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Xinze","family":"Qian","sequence":"additional","affiliation":[{"name":"Stuart School of Business, Illinois Institute of Technology, 565 W. Adams Street, Chicago, IL 60661, USA"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Jason","family":"Hu","sequence":"additional","affiliation":[{"name":"Department of Running Start, Bellevue College, 3000 Landerholm Circle SE, Bellevue, WA 98007-6406, USA"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Zixuan","family":"Jiao","sequence":"additional","affiliation":[{"name":"Division of Investment Management, Morgan Stanley, 4310 Crescent St, New York City, NY 11101, USA"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-7077-5798","authenticated-orcid":false,"given":"Haizhi","family":"Wang","sequence":"additional","affiliation":[{"name":"Stuart School of Business, Illinois Institute of Technology, 565 W. Adams Street, Chicago, IL 60661, USA"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"1968","published-online":{"date-parts":[[2025,7,9]]},"reference":[{"key":"ref_1","doi-asserted-by":"crossref","unstructured":"Sharma, S., and Arago, J.A. (2005). Corporate Environmental Strategy and Competitive Advantage: A Review from the Past to the Future, Edward Elgar Publishing.","DOI":"10.4337\/9781845426859.00007"},{"key":"ref_2","unstructured":"European Central Bank (ECB) (2024, February 20). Guide on Climate-Related and Environmental Risks: Supervisory Expectations Relating to Risk Management and Disclosure. Supervisory report. European Central Bank. 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