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The mechanisms of green finance reform and digital transformation on regional industrial innovation and entrepreneurship: Evidence from a quasi-natural experiment

Author

Listed:
  • Zhao, Shifei
  • Liu, Jianwu
  • Jiang, Guizhong

Abstract

Drawing upon data from Chinese prefecture-level cities spanning the period from 2007 to 2023, this paper empirically examines the intrinsic relationships and mechanisms among green financial reform, digital transformation, and regional industrial innovation and entrepreneurship using baseline regression, difference-in-differences, and mediation effect models. The results indicate that green financial reform significantly promotes regional industrial innovation and entrepreneurship; digital transformation also has a positive effect and plays a mediating role in this relationship, with heterogeneous effects across regions with different urbanization levels. It is worth noting that the synergistic effects of green financial reform and digital transformation are also evident in the fields of education and sports. For example, green loans are used to support low-carbon renovations of campuses and educational informatization projects, while digital technologies are leveraged to empower innovation in the sports industry and upgrade public fitness service models. This research enriches academic understanding in these fields and provides valuable theoretical and practical insights for policymaking.

Suggested Citation

  • Zhao, Shifei & Liu, Jianwu & Jiang, Guizhong, 2025. "The mechanisms of green finance reform and digital transformation on regional industrial innovation and entrepreneurship: Evidence from a quasi-natural experiment," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325011912
    DOI: 10.1016/j.frl.2025.107933
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    Cited by:

    1. Peng Liu & Nannan Guo & Yingke Liu, 2026. "Corporate digital transformation, carbon emissions, and ESG performance," Empirical Economics, Springer, vol. 70(5), pages 1-38, May.

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