This study presents evidence that investments in green technology and corporate environmental
policies, or in other words, a move towards cleaner production, increase investors'
growth expectations, resulting in a rise in firms' stock market value. Additionally,
the study statistically demonstrates that the positive correlation between cleaner
production and growth expectations strengthened during the latter half of the 2010s.
The author employs the reverse discounted cash flow method as a novel technique to
define the response variable for cleaner production. The study's outcomes carry crucial
policy implications since well-targeted measures can amplify the favorable financial
effects of green technology investments on regional, industry, or national economy
levels.
