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Green innovation's impact on corporate financing: New insights from BRICS economies

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Listed:
  • Li, Lu
  • Zhou, Shiqi
  • Xu, Wei
  • Dai, Jiapeng

Abstract

Enterprises are increasingly adopting green innovation strategies to reduce their environmental footprint and enhance their competitive positioning. However, how this shift towards sustainability influences corporate financing is less known in the literature. Therefore, this study aims to investigate the impact of green innovation on corporate financing in BRICS countries. Using data from 2010 to 2022 and system GMM for analysis, it finds that green innovation positively influences corporate financing. This highlights the growing importance of sustainable practices in shaping financial decisions. The study adds to the literature on the link between environmental sustainability and corporate finance, emphasizing sustainability's role in corporate financial strategies.

Suggested Citation

  • Li, Lu & Zhou, Shiqi & Xu, Wei & Dai, Jiapeng, 2024. "Green innovation's impact on corporate financing: New insights from BRICS economies," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002022
    DOI: 10.1016/j.frl.2024.105172
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    References listed on IDEAS

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    Cited by:

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    2. Zhang, Cong & Farooq, Umar & Jamali, Dima & Alam, Mohammad Mahtab, 2024. "The role of ESG performance in the nexus between economic policy uncertainty and corporate investment," Research in International Business and Finance, Elsevier, vol. 70(PB).
    3. Li, Yu & Zhong, Huiyi & Tong, Qiye, 2024. "Artificial intelligence, dynamic capabilities, and corporate financial asset allocation," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    4. Chen, Ning & Yan, Nan & Xie, Henglang & Ou, Yifan, 2024. "Impact of media attention on corporate green innovation: What is the role of dual environmental regulation?," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    5. Liu, Jinzhi & Zhu, Songhua, 2024. "Board gender diversity and innovation performance in manufacturing firms: What is the role of risk-taking?," Finance Research Letters, Elsevier, vol. 68(C).
    6. Qin, Lu & Chen, Chunchun & Chen, Yan & Su, Yanzhi, 2024. "Digital financial inclusion, analyst attention, and the green innovation in energy firms," Finance Research Letters, Elsevier, vol. 67(PB).
    7. Yushu, Kuang & Zongkeng, Li & Rui, Liang, 2024. "Disclosure of internal control evaluation reports of Chinese enterprises: History, problems and strategies," Finance Research Letters, Elsevier, vol. 66(C).
    8. Zhao, Xinlu & Zhang, Huixue, 2024. "How does ESG performance determine the level of specific financing in capital structure? New insights from China," International Review of Financial Analysis, Elsevier, vol. 95(PC).
    9. Safiullah, Md & Phan, Dinh Hoang Bach & Nurul Kabir, Md., 2024. "Green innovation and corporate default risk," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 95(C).
    10. Li, Bing & Tang, Kai, 2024. "Green credit policy and bankruptcy risk of heavily polluting enterprises," Finance Research Letters, Elsevier, vol. 67(PB).

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    More about this item

    Keywords

    BRICS; Corporate financing; Debt financing; Equity financing; Green innovation;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • 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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