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Although the literature advocates that the state plays a significant role in affecting firms' behaviour in emerging economies, whether state participation promotes or impedes firms' innovation decisions requires further scholarly attention. In this study, we develop a framework in which we examine how and under what conditions state participation affects firms' green innovation. Results from publicly listed firms in China show an inverted U‐shaped relationship between state participation and green innovation, so that state participation in the form of minority ownership is most effective for firms seeking to conduct green innovation. This curvilinear relationship is negatively moderated by firm age and firm size, such that the inverted U‐shape flattens when a firm is older and larger. The relationship is positively moderated by subnational institutional development such that the inverted U‐shape steepens when institutional development is higher. These findings provide useful implications for resource dependence theory in explaining whether state participation serves as a facilitator of or a burden on firms' green innovation. [ABSTRACT FROM AUTHOR]

All industries depend on natural capital assets and ecosystem services, either directly, through their supply chains, or through their investments. Companies are therefore challenged to reorient their production systems and turn the conservation and sustainable use of biodiversity into an opportunity for sustainable economic development. In this paper, we analyze the interest of institutional investors in these corporate policies through the role they play in the disclosure that companies make about them. For a balanced data panel of 8,320 firm‐year observations from 832 global companies operating in different sectors of activity over the period 2011–2020, the results obtained indicate that institutional investors, especially those with investment a long‐term investment horizon, are interested in biodiversity commitments and exercise their demand for information on these initiatives through their representatives on the board of directors. Furthermore, we show that companies are rewarded for disclosing relevant information on business policies, biodiversity management, and the valuation of ecosystem services in the value chain. [ABSTRACT FROM AUTHOR]