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Government subsidies, corporate ESG ratings, and green innovation

Author

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  • Zhang, Jingxuan
  • Wu, Yanghui
  • Lin, Lin

Abstract

Using 2010–2023 data from Chinese listed firms, this study analyzes interactions between government subsidies, ESG (Environmental, Social, and Governance) performance, and green innovation. Empirical results confirm subsidies enhance corporate green innovation, while ESG ratings similarly facilitate such ecological R&D efforts. Moreover, in the process of corporate ESG ratings influencing green innovation, government subsidies serve as a significant moderating factor. Additionally, there are notable differences in the impact of government subsidies on green innovation between state-owned enterprises and private enterprises.

Suggested Citation

  • Zhang, Jingxuan & Wu, Yanghui & Lin, Lin, 2025. "Government subsidies, corporate ESG ratings, and green innovation," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010517
    DOI: 10.1016/j.frl.2025.107793
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    References listed on IDEAS

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