Investigation of the Impact of Green Finance Reform and Innovation Pilot Zones on the Green Innovation of Heavily Polluting Enterprises — Grounded in Empirical Evidence from Listed Companies in Pilot Regions

Main Article Content

Sihan Zhang
Finance Management School, Shanghai University of International Business and Economics, Shanghai, 201499, China

DOI: https://doi.org/10.70267/fer.250203.238254

Keywords

pilot zones for green finance reform and innovation policies, heavy-polluting enterprises, green finance, R&D investment

Abstract

In 2017, the General Office of the State Council established the initial set of green finance reform and innovation pilot zones in eight locations across five provinces in order to boost the advancement of green finance. Heavily polluting enterprises represent primary targets of green finance policies, and the effects of these policies on such enterprises are significant. The enterprise value indicates the future growth potential of an organization and serves as a primary focus for its stakeholders. Consequently, examining the effects of the establishment of green finance reform and innovation pilot zones on the value of heavily polluting enterprises effectively demonstrates a micro level in order ramifications of this policy and is crucial for assessing the efficacy of green finance initiatives. The present research examines the regulatory structure of pilot zones for environmentally friendly financial and technological advancement, initiated in 2017 as a whole as a quasi-natural test, utilizing listed heavy-pollution companies in A-shares from 2010 to 2023 as the participant data provided. This study employs a DID model to analyze the impact and mechanisms of establishing pilot zones for green finance reform and innovation on the green innovation practices of heavy-pollution enterprises. The findings indicate that the creation of pilot zones for green finance reform and innovation facilitates green innovation among enterprises. The policy of pilot zones for green finance reform and innovation can enhance the level of enterprises’ green innovation through increased R&D investment. Subsequent research indicates that, regarding enterprise characteristics, the creation of pilot zones for green finance reform and innovation significantly enhances the green innovation of state-owned enterprises. This paper presents significant empirical evidence supporting the ongoing promotion of the comprehensive and practical development of pilot zones for green finance reform and innovation, aimed at achieving modern development characterized by the harmonious coexistence of humanity and nature.

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Published
Oct 31, 2025
Issue
Vol. 2 No. 3 (2025)
Section
Research Articles
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How to Cite

Zhang, S. (2025). Investigation of the Impact of Green Finance Reform and Innovation Pilot Zones on the Green Innovation of Heavily Polluting Enterprises — Grounded in Empirical Evidence from Listed Companies in Pilot Regions. Financial Economics Research, 2(3), 238-254. https://doi.org/10.70267/fer.250203.238254

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