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Corporate financialization, digitalization and green innovation: A panel investigation on Chinese listed firms

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  • Yang, Jinghao
  • Chen, Siyu

Abstract

By employing a panel dataset of Chinese listed companies spanning from 2010 to 2021, our study empirically examines the correlation between corporate financialization and corporate green innovation, and explores its heterogeneities in terms of property rights structure and digitalization. Our findings suggest that corporate financialization has a negative impact on corporate green innovation. This negative influence is primarily attributed to the substitution of corporate financialization for research and development funds that are essential for corporate green innovation, while the “reservoir effect” of corporate financialization is not significant. In comparison to state-owned enterprises, which face weaker financing constraints, the impact of corporate financialization on green innovation is more significant in private enterprises. Moreover, we find that digitalization could alleviate the inhibition of corporate financialization on green innovation. Based on our findings, we offer several suggestions for developing strategies to promote green innovation in China.

Suggested Citation

  • Yang, Jinghao & Chen, Siyu, 2023. "Corporate financialization, digitalization and green innovation: A panel investigation on Chinese listed firms," Innovation and Green Development, Elsevier, vol. 2(3).
    • Handle: RePEc:eee:ingrde:v:2:y:2023:i:3:s294975312300036x
    DOI: 10.1016/j.igd.2023.100068
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    2. Murtaza Hussain & Shaohua Yang & Umer Sahil Maqsood & R. M. Ammar Zahid, 2024. "Tapping into the green potential: The power of artificial intelligence adoption in corporate green innovation drive," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4375-4396, July.
    3. Xiuhai Huang & Zhenyu Xu, 2024. "Has the development of the digital economy increased corporate financial asset holdings? --A quasi-natural experiment based on the "Broadband China" policy," Journal of Economic Statistics, Anser Press, vol. 2(1), pages 18-37, January.
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    5. Lin, Ying & Yin, Hua-Tang & Wen, Jun & Chang, Chun-Ping, 2024. "Assessing the impact of religion on environmental quality," Economic Systems, Elsevier, vol. 48(1).
    6. 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).
    7. Abbas, Jaffar & Balsalobre-Lorente, Daniel & Amjid, Muhammad Asif & Al-Sulaiti, Khalid & Al-Sulaiti, Ibrahim & Aldereai, Osama, 2024. "Financial innovation and digitalization promote business growth: The interplay of green technology innovation, product market competition and firm performance," Innovation and Green Development, Elsevier, vol. 3(1).
    8. Wang, Jun-Zhuo & Feng, Gen-Fu & Yin, Hua-Tang & Chang, Chun-Ping, 2023. "Toward sustainable development: Does the rising oil price stimulate innovation in climate change mitigation technologies?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 569-583.
    9. Mashael Khayyat & Mohammed Balfaqih & Hasan Balfaqih & Mahamod Ismail, 2024. "Challenges and Factors Influencing the Implementation of Green Logistics: A Case Study of Saudi Arabia," Sustainability, MDPI, vol. 16(13), pages 1-37, June.
    10. Xiao, Zumian & Wang, Shuhan & Zhang, Yepeng & Si, Deng-Kui, 2023. "Power of competition: Unraveling the impact of China's fair competition review system implementation on firm innovation," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1561-1581.
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    More about this item

    Keywords

    Corporate financialization; Digitalization; Green innovation;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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