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From concept to capital: Investigating the influence of green innovation on equity financing in BRICS economies

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  • Chen, Qianqian

Abstract

As the world rallies for a greener tomorrow, understanding the financial benefits of going green is paramount. This study investigates the association between green innovation (GI) and equity financing within the BRICS economies. By utilizing a comprehensive dataset spanning 13 years (2010−2022) and employing the system GMM technique for dissemination of regression, the study investigates the influence of green innovation proxies including green product innovation (GPI), green environmental development (GED), and green patent registration (GPR) on EFE (equity financing). The findings reveal a consistent and significant positive relationship between GPI, GED, GPR, and equity financing, indicating that companies engaging in green innovation strategies tend to attract more equity financing. Practically, this study highlights how embracing green innovation can bolster companies' financial standing, while socially, it underscores the growing importance of sustainability in shaping investment decisions and fostering a greener economy. This study unveils the previously untapped financial potential of green innovation in driving equity financing within the vibrant BRICS economies.

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  • Chen, Qianqian, 2024. "From concept to capital: Investigating the influence of green innovation on equity financing in BRICS economies," International Review of Financial Analysis, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924001650
    DOI: 10.1016/j.irfa.2024.103233
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    More about this item

    Keywords

    BRICS; Equity financing; Green innovation; Green product innovation;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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