How Does Green Innovation Affect Corporate Profitability? An Empirical Study Based on the Mediating Effect of Green Patents of Agricultural Listed Companies

Main Article Content

Ziqi Zhang
School of Economics and Management, Shandong Agricultural University, Tai’an 271000, China

Shuangxiao Li
School of Economics and Management, Shandong Agricultural University, Tai’an 271000, China

DOI: https://doi.org/10.70267/fer.250302.208224

Keywords

green innovation, corporate profitability, green patents, financing constraints, agricultural enterprises

Abstract

In the context of global sustainable development strategies and China’s “dual carbon” goals, green innovation has become a critical driving force for the transformation and development of agricultural enterprises. This study takes Chinese A-share agricultural listed companies from 2016 to 2024 as the research sample and systematically examines the impact mechanism of green innovation on corporate profitability. It particularly introduces green patents as a mediating variable to reveal the transmission path between green innovation and profitability. The study employs the entropy weight method to construct a comprehensive corporate profitability score. Green innovation is measured from two dimensions: R&D intensity and financing constraints. Empirical tests are conducted using multiple regression models. The results show that R&D intensity has a significant negative impact on corporate profitability, while financing constraints exert a significant positive impact. Green patents play a positive mediating role between R&D intensity and profitability, but a negative mediating role between financing constraints and profitability. Heterogeneity analysis indicates that the above relationships are more pronounced in the northern regions and in the post-epidemic period. The findings provide empirical support and policy implications for agricultural listed companies to optimize green innovation resource allocation and enhance profitability, and offer experience and path references from the Chinese capital market for global agricultural green transformation and sustainable development.

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Published
May 7, 2026
Issue
Vol. 3 No. 2 (2026)
Section
Research Articles
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How to Cite

Zhang, Z., & Li, S. (2026). How Does Green Innovation Affect Corporate Profitability? An Empirical Study Based on the Mediating Effect of Green Patents of Agricultural Listed Companies. Financial Economics Research, 3(2), 208-224. https://doi.org/10.70267/fer.250302.208224