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Green finance development on corporate sustainability: Evidence from china

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  • Zhang, Wan
  • Zhang, Yuyao
  • Mou, Suitao

Abstract

We examine green finance development’s impact on corporate sustainability using panel data of Chinese A-share listed companies from 2010 to 2022. We investigate how green finance influences corporate sustainability via two key mechanisms: green innovation and environmental performance. Our findings reveal that green finance significantly enhances corporate sustainability, with more potent effects observed in firms with higher debt financing costs and regions with higher market competition and greater market development. Green credit, insurance, and investment significantly contribute to corporate sustainability. The research provides critical insights into how financial mechanisms can support sustainable corporate development, offering valuable guidance for policymakers and corporate managers seeking to promote ecology.

Suggested Citation

  • Zhang, Wan & Zhang, Yuyao & Mou, Suitao, 2025. "Green finance development on corporate sustainability: Evidence from china," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007275
    DOI: 10.1016/j.frl.2025.107468
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    3. Xiaoling Yu & Kaitian Xiao, 2025. "The Impact of Green Finance Policy on Environmental Performance: Evidence from China," Sustainability, MDPI, vol. 17(17), pages 1-23, August.
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    5. Xiujing Qi & Jiaqi Li & Yongliang Yang, 2025. "How Does the Perception of Climate Change Affect Residents’ Choices of Green Assets?," Sustainability, MDPI, vol. 17(7), pages 1-25, April.

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