Green innovation plays a pivotal role in fostering the harmonious development of economic growth and environmental preservation. This article employs a panel regression model using data from Chinese A-share listed companies spanning from 2011 to 2020 to investigate the influence of digital finance on corporate green innovation and its underlying mechanisms. The findings reveal that digital finance effectively facilitates green innovation by mitigating corporate financing constraints and reducing business risks. Furthermore, the study highlights the moderating role of government subsidies. Additionally, a heterogeneity analysis indicates that digital finance exerts a more pronounced impact on green innovation in the east-central region compared to the western region. The breadth and depth of coverage are significant factors influencing corporate green innovation, while the level of digitization exhibits no substantial effect. Consequently, this study contributes to establishing a theoretical foundation for leveraging digital finance to advance enterprises' transition towards sustainability.
Deng, Ping; Sun, Chuyin; and LU, HAO, "Does digital finance enhance corporate green innovation?" (2023). PACIS 2023 Proceedings. 50.
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