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Regional financial reform and corporate green innovation–Evidence based on the establishment of China National Financial Comprehensive Reform Pilot Zones

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  • Chen, Chen
  • Zhang, Tian
  • Chen, Haitao
  • Qi, Xiulin

Abstract

Green innovation is a micro-individual behavior that balances development and environmental protection, but relies on a good macro-market environment and institutional safeguards. A policy named China National Financial Comprehensive Reform Pilot Zones aims to improve the regional financial environment. This paper uses it as a quasi-natural experiment to measure the role of regional financial reforms on corporate green innovation. we found that: regional financial reforms significantly enhance corporate green innovation. Next, this green innovation promotion is more pronounced for regions with developed markets or green financial reforms, as well as for high-polluting and entity companies. Furthermore, the financing constraints and size of companies have an impact on the redistribution of reform dividends.

Suggested Citation

  • Chen, Chen & Zhang, Tian & Chen, Haitao & Qi, Xiulin, 2024. "Regional financial reform and corporate green innovation–Evidence based on the establishment of China National Financial Comprehensive Reform Pilot Zones," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012217
    DOI: 10.1016/j.frl.2023.104849
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    References listed on IDEAS

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    Cited by:

    1. Song, Simiao & Wang, Fan & Liu, Xia, 2024. "Impact of the regional financial reform on corporate financialization: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    2. Che, Shuai & Tao, Miaomiao & Silva, Emilson & Sheng, Mingyue Selena & Zhao, Congyu & Wang, Jun, 2024. "Financial misallocation and green innovation efficiency: China's firm-level evidence," Energy Economics, Elsevier, vol. 136(C).
    3. Xuwei Tang & Qi Zhang & Chunxin Li & Haitao Zhang & Haiyun Xu, 2024. "Can Civilized City Construction Promote Enterprise Green Innovation?," Sustainability, MDPI, vol. 16(8), pages 1-20, April.
    4. Zemenghong Bao & Zhisen Lin & Tiantian Jin & Kun Lv, 2024. "Regional Breakthrough Innovation Change Strategies, Ecological Location Suitability of High-Tech Industry Innovation Ecosystems, and Green Energy," Energies, MDPI, vol. 17(16), pages 1-34, August.

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