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Environmental courts, financing constraints, and corporate green innovation

Author

Listed:
  • Wang, Siheng
  • Zhang, Xin

Abstract

As environmental judicial reforms advance, environmental courts have become a crucial breakthrough in enhancing corporate environmental governance. This paper evaluates the impact of environmental courts on corporate green innovation, using panel data from Chinese A-share listed companies from 2003 to 2022. The study finds that the establishment of environmental courts can promote corporate green innovation, primarily by alleviating financing constraints. Based on the research findings, corresponding recommendations are proposed, offering practical significance and insights for promoting the synergy between environmental courts and sustainable economic development.

Suggested Citation

  • Wang, Siheng & Zhang, Xin, 2025. "Environmental courts, financing constraints, and corporate green innovation," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000029
    DOI: 10.1016/j.frl.2025.106737
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    More about this item

    Keywords

    Environmental courts; Financing constraints; Green innovation;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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