IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v90y2025ics0927538x25000101.html
   My bibliography  Save this article

Does financial risk exacerbate the risk of low-quality green innovation?

Author

Listed:
  • Kong, Wei

Abstract

Using panel data from 46 countries for the period 2005–2020, this paper finds that although financial risk does not directly lead to a decline in the quantity of green innovation, it significantly exacerbates low-quality green innovation. This result remains robust after a series of robustness checks. Mechanism regressions show that countries can mitigate the tendency toward low-quality innovation caused by financial risk by introducing FDI, strengthening green innovation cooperation with OECD countries, and improving the quality of their legal systems. Moreover, heterogeneity analysis reveals that the deterioration in green innovation quality due to financial risk is mainly concentrated in non-OECD countries that are economically underdeveloped, have a low innovation base, and suffer from high environmental pollution. This study highlights the importance of analyzing green innovation from a quality dimension, providing insights for countries to effectively respond to financial risk and avoid falling into the trap of low-quality innovation.

Suggested Citation

  • Kong, Wei, 2025. "Does financial risk exacerbate the risk of low-quality green innovation?," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:pacfin:v:90:y:2025:i:c:s0927538x25000101
    DOI: 10.1016/j.pacfin.2025.102673
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X25000101
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2025.102673?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Financial risk; Green innovation; Low-quality; Patent;
    All these keywords.

    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:90:y:2025:i:c:s0927538x25000101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.