Green Finance Policy and Corporate Green Innovation: Empirical Evidence from Green Finance Reform and Innovation Pilot Zones
Main Article Content
Keywords
green finance reform and innovation pilot zones, green finance, corporate green innovation, multi-period difference-in-differences, corporate governance, information disclosure
Abstract
Green innovation is characterized by both dual externalities and long cycles, and generally faces financing constraints and governance deficiencies. Relying solely on market mechanisms is insufficient to fully unleash the vitality of corporate green innovation. Using Shanghai and Shenzhen A-share listed companies from 2014 to 2024 as the research sample and leveraging the staggered establishment of green finance reform and innovation pilot zones as a quasi-natural experiment, this paper constructs a multi-period difference-in-differences (DID) model to systematically examine the micro-level incentive effects and transmission mechanisms of the pilot zone policies, analyzing them through the dual dimensions of innovation intensity and innovation willingness. Empirical results indicate that the policy establishing pilot zones for green finance reform and innovation significantly boosts the level of green innovation among enterprises within these jurisdictions. Specifically, the volume of green patent applications by pilot enterprises increased by an average of 12.92% compared to non-pilot enterprises. The policy exhibits both a corporate governance substitution effect and an information disclosure extension effect, demonstrating a more pronounced promotional impact on innovation among enterprises with weak internal governance foundations or inadequate environmental information disclosure, thereby reflecting a mechanism that addresses and remedies specific weaknesses. The marginal contributions of this paper are threefold: It first replaces the focus on single green financial instruments with comprehensive policy pilots, employs a multi-period difference-in-differences (DID) approach to mitigate endogeneity issues, and refines the measurement system for green innovation across dual dimensions. It also transcends the limitations of existing literature, which largely focuses on the financing constraint channel, by revealing the dual functions of green finance in resource allocation and external governance. Finally, it characterizes the heterogeneous effects of the policy across different types of firms, providing micro-level empirical evidence to support targeted policy implementation and differentiated empowerment of corporate green innovation.
References
- [1] Zhang, W. Q., & Chen, Y. K. (2022). Research on the impact of environmental regulation tools and R&D subsidies on green technology innovation. Ecological Economy, 38(1), 36–46.
- [2] Chen, W., Lin, R., & Ma, G. (2026). Responsibility in the shadows: How does firms’ shadow banking reshape carbon emission performance? Finance Research Letters, Article 110163. https://doi.org/10.1016/J.FRL.2026.110163
- [3] Xie, W. Y., Li, M. X., & Yang, K. (2025). Research on the mechanism of patient capital on the green transformation and development of heavily polluting enterprises. Financial Theory & Practice, (11), 20–30.
- [4] Li, S. H., You, B. Y., Niu, K., et al. (2025). Green credit, informal financial financing and green innovation of heavily polluting enterprises. Economic Research Journal, 60(9), 198–217.
- [5] Sun, X. Y., & Shao, J. J. (2025). Research on the impact of green credit policy on the quality of enterprise green innovation. Time Economy and Trade, 22(6), 61–66. https://doi.org/10.19463/j.cnki.sdjm.2025.06.008
- [6] Ma, Z. H., Gu, H. Y., & Wang, Y. X. (2026). Government guidance funds, institutional friction and enterprise innovation quality: From the perspective of patient capital. Studies in Science of Science, 1–14. Advance online publication. https://doi.org/10.16192/j.cnki.1003-2053.20260717.002
- [7] Chen, M., Xu, H., Tian, F., et al. (2026). The impact of China’s R&D and innovation strategy on total factor productivity of listed intelligent manufacturing firms. Sustainability, 18(10), 5128. https://doi.org/10.3390/SU18105128
- [8] Cui, H., Lu, Z., & Li, H. M. (2026). Green finance reform and innovation pilot zone policies and enterprise green productivity. Research on Economics and Management, 47(7), 62–77. https://doi.org/10.13502/j.cnki.issn1000-7636.2026.07.005
- [9] Wang, Y., Wang, J. Z., Wu, Z. S., et al. (2025). Can green finance promote the economy’s shift from virtual to real? Empirical evidence based on green finance reform and innovation pilot zones. Journal of Financial Research, (12), 20–38.
- [10] Lü, K. J., & Zhu, X. G. (2026). Green finance and clean energy industry: Evidence from the scale of photovoltaic power stations under regional development differentiation. Journal of Shanghai University (Social Sciences Edition), 43(4), 132–148.
- [11] Zhang, R., & Ling, S. (2026). The synergistic effect of environmental tax and green finance policy on corporate green technology innovation: Empirical evidence from Chinese listed firms. Sustainability, 18(9), 4502. https://doi.org/10.3390/SU18094502
- [12] Zhou, Y. F. (2025). Research on green technology innovation empowering high-quality regional economic development from the perspective of innovation factor recombination and institutional synergy. Jiangsu Science & Technology Information, 42(20), 16–22.
- [13] Zeng, H. X., & Ding, N. (2026). Research on the composite effect of equity incentives and employee stock ownership on enterprise green innovation. Business Accounting, (13), 4–10.
Article Sidebar
This work is licensed under a Creative Commons Attribution 4.0 International License.