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The impact of green finance reform and innovation policies on green investors in China

Author

Listed:
  • Wang, Jinwei
  • Li, Xiaofan
  • Zhang, Ting
  • He, Chonghe
  • Zhu, Liwen

Abstract

This article examines the impact of green finance reform and innovation policies on green investors. Based on data of Chinese A-shares listed companies from 2010–2021, this study conducts empirical analyses using a multi-period difference-in-differences estimation strategy and uncovering the mechanisms by a two-step mediation effect model. The results demonstrate that China’s green finance reform and innovation policies significantly help enterprises attract green investors by promoting enterprises’ environmental performance and green technology innovation. And green finance reform and innovation policies have more significant effect in the samples of non-state-owned enterprises and enterprises in non-heavily polluted industries. Based on this, China's current policies should encourage increased investment in green innovation research and development, strengthen the demonstration role of non-state-owned enterprises, enhance the green innovation capabilities of the industry, and provide support for the sustainable development of enterprises.

Suggested Citation

  • Wang, Jinwei & Li, Xiaofan & Zhang, Ting & He, Chonghe & Zhu, Liwen, 2025. "The impact of green finance reform and innovation policies on green investors in China," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009675
    DOI: 10.1016/j.frl.2025.107709
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    1. Junjie Yin & Zhenxing Huang & Jiapeng Liu & WeiWei Li, 2026. "Does the green human capital of top management teams affect corporate environmental protection investment decisions?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-23, December.

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    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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