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Regional financial reform and corporate green innovation–Evidence based on the establishment of China National Financial Comprehensive Reform Pilot Zones

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  • Chen, Chen
  • Zhang, Tian
  • Chen, Haitao
  • Qi, Xiulin

Abstract

Green innovation is a micro-individual behavior that balances development and environmental protection, but relies on a good macro-market environment and institutional safeguards. A policy named China National Financial Comprehensive Reform Pilot Zones aims to improve the regional financial environment. This paper uses it as a quasi-natural experiment to measure the role of regional financial reforms on corporate green innovation. we found that: regional financial reforms significantly enhance corporate green innovation. Next, this green innovation promotion is more pronounced for regions with developed markets or green financial reforms, as well as for high-polluting and entity companies. Furthermore, the financing constraints and size of companies have an impact on the redistribution of reform dividends.

Suggested Citation

  • Chen, Chen & Zhang, Tian & Chen, Haitao & Qi, Xiulin, 2024. "Regional financial reform and corporate green innovation–Evidence based on the establishment of China National Financial Comprehensive Reform Pilot Zones," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012217
    DOI: 10.1016/j.frl.2023.104849
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    References listed on IDEAS

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    Cited by:

    1. Song, Simiao & Wang, Fan & Liu, Xia, 2024. "Impact of the regional financial reform on corporate financialization: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    2. Xuwei Tang & Qi Zhang & Chunxin Li & Haitao Zhang & Haiyun Xu, 2024. "Can Civilized City Construction Promote Enterprise Green Innovation?," Sustainability, MDPI, vol. 16(8), pages 1-20, April.
    3. Wang, Dongjing & Yong, Chen & Wang, David (Han) & Tian, Grace (Li), 2025. "Synergistic effects and mechanisms of green financial reform, environmental regulation intensity, and regional green innovation levels," International Review of Economics & Finance, Elsevier, vol. 102(C).
    4. Lin, Xudong & Zhu, Hao & Meng, Yiqun, 2025. "Financial order matters: The real effect of financial-judicial trials on stock price informativeness," International Review of Financial Analysis, Elsevier, vol. 102(C).
    5. Ping Lin & Dixin Cai & Qingfeng Geng & Junbing Xu, 2025. "From Green to Gold: the cash management impact of China’s new diversified green finance policy," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    6. Ma, Zihao & Zhang, Pingdan, 2025. "Did the main functional area planning promote green development in China?," Technological Forecasting and Social Change, Elsevier, vol. 220(C).
    7. Zhong, Shen & Zhou, Zhicheng & Gao, Wei, 2025. "Impact of regional finance reform and innovation policies on green innovation in pilot cities: A quasi-natural experiment," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 888-911.
    8. Bingnan Guo & Baoliang Zhan & Mengyu Wang, 2025. "How Does Green Financial Reform Impact Carbon Emission Reduction and Pollutant Mitigation in Chinese Manufacturing Enterprises?," Sustainability, MDPI, vol. 17(17), pages 1-23, August.
    9. Zhang, Shujun & Chen, Dingyang & Zou, Qifeng, 2025. "China's green transformation under the dual incentives of economic growth and environmental protection," International Review of Financial Analysis, Elsevier, vol. 102(C).
    10. Wang, Haoran & Ye, Lei & Zhang, Rongxin & Bao, Ziru, 2025. "The effect of digital inclusive finance on corporate technological innovation: A multilevel approach," Finance Research Letters, Elsevier, vol. 85(PD).
    11. Li, Lu & Gan, Yufei & Bi, Shuochen & Fu, Haokai, 2025. "Substantive or strategic? Unveiling the green innovation effects of pilot policy promoting the integration of technology and finance," International Review of Financial Analysis, Elsevier, vol. 97(C).
    12. Che, Shuai & Tao, Miaomiao & Silva, Emilson & Sheng, Mingyue Selena & Zhao, Congyu & Wang, Jun, 2024. "Financial misallocation and green innovation efficiency: China's firm-level evidence," Energy Economics, Elsevier, vol. 136(C).
    13. Zemenghong Bao & Zhisen Lin & Tiantian Jin & Kun Lv, 2024. "Regional Breakthrough Innovation Change Strategies, Ecological Location Suitability of High-Tech Industry Innovation Ecosystems, and Green Energy," Energies, MDPI, vol. 17(16), pages 1-34, August.
    14. Jin, Bo & Xie, Yutong & Huang, Jie, 2025. "Green finance reform pilot zones promote green technology innovation in industrial enterprises," Finance Research Letters, Elsevier, vol. 86(PA).
    15. Xiao, Biyun & Li, Haibo, 2025. "Financial efficiency, green innovation and green total factor productivity," Finance Research Letters, Elsevier, vol. 76(C).

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