Firms, Finance and Sustainable Transitions
The Financial Constraints of Eco-Innovation Companies
Edgardo Sica
Chapter 3: Eco-innovations and finance theory
The Financial Constraints of Eco-Innovation Companies
Edgardo Sica
Extract
Although the importance of finance for innovations has been recognised by Schumpeter since 1912, literature on EIs does not take into account the role of financial resources as a possible driver/barrier to the companies’ eco-innovative decisions. In this framework, this chapter discusses the relevance of finance for EIs. The chapter starts by analysing the capital structure of companies with particular reference to the financial options provided by the green finance to the eco-innovative enterprises. Then, it moves towards the analysis of the finance theory and the corresponding empirical findings, by focusing on two main bodies of literature. The first includes literature on capital structure and the theory of hierarchy of finance. The second focuses upon the determinants of companies’ financial constraints, with particular reference to the role of different financial systems.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.