This paper investigates how equity analysts influence firms' green innovation across different financial markets. Using a unique data set consisting of more than 6000 listed firms across 56 different countries, we find that corporate green innovation is positively associated with the number of equity analysts following the firm. We attribute this result to the informational role of analysts, which encourages managers to invest more in eco‐innovation. However, when we divide the full sample into two subsamples based on whether covered firms are incorporated in market‐oriented or bank‐oriented countries, we find that the association between firm's green innovation and analyst coverage becomes negative in the case of market‐oriented financial systems. We argue that potential explanations for this result rely on the differences occurring among market‐oriented and bank‐oriented systems in terms of listed companies' ownership structure and the prevalence of arm's length transaction banking rather than long‐term lender–borrower relationships.

Using a large sample of public firms in 51 countries during the period from 2010 to 2015 and a two-stage least squares (2SLS) regression with an instrumental variable (IV), this study investigates how corporate social responsibility (CSR) and corporate governance (CG) mechanisms interact to influence a firm’s intellectual capital (IC) efficiency. The empirical results reveal that CSR engagement and CG structures influence the firm efficiency in managing IC. This study contributes to managerial practice by demonstrating the causal effect of CSR on value-added intellectual capital (VAIC) measures and the positive impact of CG on both CSR engagement and the efficiency with which firms manage their IC. Furthermore, the current study provides an additional understanding of the relationship among CSR engagement, CG practices, and the determining factors of IC efficiency within a comprehensive framework.