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The effect of green innovation on corporate financial performance: Does quality matter?

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  • Liu, Liqian
  • Feng, Amei
  • Liu, Mingxia

Abstract

Green innovation is a new path toward sustainable social development. This study provides substantial evidence of the effects of green innovation on corporate financial performance. Using a sample of Chinese A-share listed companies from 2012 to 2021, we find that green innovation significantly improves corporate financial performance. However, this positive effect only exists in high-quality green innovation. Further, our mechanism analysis indicates that high-quality green innovation effectively improves firms' financial performance through competitiveness improvement effect.

Suggested Citation

  • Liu, Liqian & Feng, Amei & Liu, Mingxia, 2024. "The effect of green innovation on corporate financial performance: Does quality matter?," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s154461232400285x
    DOI: 10.1016/j.frl.2024.105255
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    References listed on IDEAS

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