Identification of the Causal Effect of Institutional Investor Ownership on Corporate Green Innovation Based on Double Machine Learning

DOI

10.2991/978-94-6239-787-3_26How to use a DOI?

Keywords

Double Machine Learning; Institutional Investor Ownership; Corporate Green Innovation; Causal Effect Identification; Green Patent Output

Abstract

As capital markets place greater weight on environmental governance, the role of institutional shareholders in shaping firms’ green patenting has be-come a central question in corporate finance and environmental economics. This paper develops a causal identification design for high-dimensional pan-el data by combining fixed-effect residualization with Double Machine Learning. Institutional ownership is specified as the treatment, while green patent applications measure the outcome. The covariate set covers firm financial conditions, ownership and board characteristics, industry information, local environmental regulation, and macroeconomic indicators. To estimate the nuisance components in the treatment and outcome equations, the framework combines Lasso, random forest, gradient boosting, and neural-network learners, and it applies cross-fitting together with a Neyman-orthogonal score to limit overfitting and shrinkage bias. Firm, year, and industry-by-year effects are included before the machine-learning step so that persistent firm differences and common time shocks are filtered out. The empirical estimates indicate that higher institutional ownership is associated with a positive and statistically meaningful increase in firms' green innovation output.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Jin Cui
AU  - Xinyue Miao
PY  - 2026
DA  - 2026/09/29
TI  - Identification of the Causal Effect of Institutional Investor Ownership on Corporate Green Innovation Based on Double Machine Learning
BT  - Proceedings of the 2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)
PB  - Atlantis Press
SP  - 245
EP  - 251
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-787-3_26
DO  - 10.2991/978-94-6239-787-3_26
ID  - Cui2026
ER  -