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Fulfillment of environmental responsibility, targeted reduction of inclusive finance and corporate NPD innovation

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  • Li, Ye
  • Lu, Honghong
  • Sun, Minxian

Abstract

This study empirically explores the connection between environmental responsibility, the intentional reduction of inclusive finance, and corporate innovation in new product development (NPD). The focus is on technology-driven innovative firms listed in the Shanghai and Shenzhen capital markets in China. The findings reveal that targeted reductions in inclusive finance can significantly boost corporate NPD innovation. Additionally, the fulfillment of environmental responsibilities amplifies the positive impact of inclusive finance on NPD innovation. Further analysis indicates that this positive relationship is more prominent in firms with substantial financing constraints, limited government subsidies, and those located in areas with lower resource endowments.

Suggested Citation

  • Li, Ye & Lu, Honghong & Sun, Minxian, 2025. "Fulfillment of environmental responsibility, targeted reduction of inclusive finance and corporate NPD innovation," International Review of Financial Analysis, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:finana:v:99:y:2025:i:c:s1057521925000377
    DOI: 10.1016/j.irfa.2025.103950
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