IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v86y2025ipds1544612325016307.html

Driving factors of corporate green transformation: From the dual perspectives of responsibility and subsidies

Author

Listed:
  • Duan, Xu
  • Wu, Jiangyue

Abstract

This study examines internal and external driving factors of corporate green transformation using a panel model and data from Chinese listed companies spanning 2010–2023. Empirical results show that corporate social responsibility (CSR) promotes sustainable development and external government financial subsidies mediate this relation. Moreover, the effect of CSR is more obvious in eastern China, technology-intensive industries, and environmentally friendly enterprises. Increased corporate internal control and regional environmental control also boosts the influence of CSR.

Suggested Citation

  • Duan, Xu & Wu, Jiangyue, 2025. "Driving factors of corporate green transformation: From the dual perspectives of responsibility and subsidies," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325016307
    DOI: 10.1016/j.frl.2025.108376
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325016307
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.108376?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Junyi & Liu, Qigui & Huang, Wei & Ying, Tingting, 2025. "Silence is gold: Narrative conservatism of SOE managers," International Review of Financial Analysis, Elsevier, vol. 103(C).
    2. Hua Hong & Lili Sun & Lijuan Zhao, 2024. "Exploring the Impact of Digital Inclusive Finance on Agricultural Carbon Emissions: Evidence from the Mediation Effect of Capital Deepening," Sustainability, MDPI, vol. 16(7), pages 1-21, April.
    3. Zhou, Jiezheng & Liu, Xuexin & Wang, Zhe, 2025. "Tax neutrality and digital transformation of private enterprises: From the perspective of human capital structure adjustment," International Review of Financial Analysis, Elsevier, vol. 103(C).
    4. Xu, Xiaofang & Wan, Qi & Ma, Jingru & Peng, Qilin, 2025. "What drives institutional investors' site visit decisions: The role of local business environment in China," International Review of Financial Analysis, Elsevier, vol. 103(C).
    5. Zhiyuan, Dong & Zenglian, Zhang & Mingqin, Chen, 2025. "Impact of local government attention on basic research," International Review of Financial Analysis, Elsevier, vol. 103(C).
    6. Xiuping Li & Ye Yang, 2022. "Does Green Finance Contribute to Corporate Technological Innovation? The Moderating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 14(9), pages 1-17, May.
    7. Doudou Chen & Zhen Peng, 2023. "Altruistic motivation or instrumental motivation: The spatial spillover effect of corporate social responsibility on corporate green innovation," PLOS ONE, Public Library of Science, vol. 18(10), pages 1-19, October.
    8. Chen, Hongze & Li, Conggang & Liu, Jiatao & Xu, Rong, 2025. "Navigating digital frontiers: The impact of China's cybersecurity law on corporate digital innovation," International Review of Financial Analysis, Elsevier, vol. 103(C).
    9. Jason Z. Ma & Hung-Yi Huang & Qi Zhu & Xixi Shen, 2022. "Corporate Social Responsibility Disclosure, Market Supervision, and Green Investment," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(15), pages 4389-4398, December.
    10. Ahmed Abubakar & Shweta Belwal & Nuhu Mohammed & Umaru Danladi Mohammed & Marcio Eisencraft, 2022. "Sustainable Competitive Advantage through Corporate Social Responsibility (CSR) and Green Behavior Strategies," Discrete Dynamics in Nature and Society, Hindawi, vol. 2022, pages 1-8, March.
    11. Zonghua Liu & Yulang Guo & Ming Zhang & Tianping Mao, 2023. "Smog risk perception, corporate social responsibility, and green innovation: evidence from China," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 19(8), pages 1419-1434, January.
    12. Mbanyele, William & Huang, Hongyun & Li, Yafei & Muchenje, Linda T. & Wang, Fengrong, 2022. "Corporate social responsibility and green innovation: Evidence from mandatory CSR disclosure laws," Economics Letters, Elsevier, vol. 212(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jin, Rui & Li, Yuxuan & Zhao, Mingren, 2025. "How educational finance affects the “generational Chain” of poverty in China," Finance Research Letters, Elsevier, vol. 86(PB).
    2. Shi, Lelai & Lin, Hong & Tan, Bing, 2025. "The impact of the coupling coordination between new-type urbanization and the digital economy on ecological efficiency," International Review of Financial Analysis, Elsevier, vol. 105(C).
    3. Su, Yu, 2025. "The hidden cost of geopolitical risk: Corporate violations in China," International Review of Financial Analysis, Elsevier, vol. 105(C).
    4. Pan, Yuyao & Guo, Xiaochuan, 2025. "Digital technology innovation, entrepreneurship and high-quality corporate development," Finance Research Letters, Elsevier, vol. 82(C).
    5. Jing, Ruifeng & Xu, Yanmei & Liu, Ruizhi, 2025. "Data element, big data and enterprise innovation: Evidence from data trading platforms and national big data comprehensive pilot zones," International Review of Financial Analysis, Elsevier, vol. 105(C).
    6. Shi, Wenlei & Ying, Limeng & Ma, Guohua & Niu, Yanfang & Lv, Yuanyuan & Xu, Xiaofang, 2025. "Intelligent manufacturing, media attention, and sustainable development performance," International Review of Financial Analysis, Elsevier, vol. 106(C).
    7. Li, LinBai & Li, BeiWei, 2025. "Impact of inclusive innovation on firm performance," Finance Research Letters, Elsevier, vol. 82(C).
    8. Fan, Tao & Chen, Keren, 2025. "Unpacking digital economy effects: performance enhancement through supply chain risk management," Finance Research Letters, Elsevier, vol. 84(C).
    9. Uyar, Ali & Lodh, Suman & Nandy, Monomita & Kuzey, Cemil & Karaman, Abdullah S., 2023. "Tradeoff between corporate investment and CSR: The moderating effect of financial slack, workforce slack, and board gender diversity," International Review of Financial Analysis, Elsevier, vol. 87(C).
    10. Yang, Tiantian & Tol, Richard S.J., 2026. "Interactions between multiple environmental markets: addressing contamination bias in overlapping policies," Energy Economics, Elsevier, vol. 153(C).
    11. Kentaro Azuma & Akira Higashida, 2024. "Climate change disclosure and evolving institutional investor salience: Roles of the Principles for Responsible Investment," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3669-3686, May.
    12. Boungou, Whelsy & Dufau, Bastien, 2025. "Shareholder wealth effects of corporate sustainability reporting regulations," Finance Research Letters, Elsevier, vol. 80(C).
    13. Yang Zhang, 2025. "Does ESG Performance Affect Enterprise Innovation Performance? A Study on Governance and Resource Effects," SAGE Open, , vol. 15(3), pages 21582440251, July.
    14. Lijuan Wu & Shanyue Jin, 2022. "Corporate Social Responsibility and Sustainability: From a Corporate Governance Perspective," Sustainability, MDPI, vol. 14(22), pages 1-15, November.
    15. Biao Hu & Kai Yuan & Tingyun Niu & Liang Zhang & Yuqiong Guan, 2022. "Study on the Spatial and Temporal Evolution Patterns of Green Innovation Efficiency and Driving Factors in Three Major Urban Agglomerations in China—Based on the Perspective of Economic Geography," Sustainability, MDPI, vol. 14(15), pages 1-28, July.
    16. Francesco Chirico & Kimberly A. Eddleston & Pankaj C. Patel, 2025. "Does it Pay to Patent Green Innovations? Stock Market Reactions to Family and Nonfamily Firms’ Green Patents," Journal of Business Ethics, Springer, vol. 198(4), pages 947-970, May.
    17. Ahsan Akbar & Muhammad Usman & Teng Lin, 2024. "Institutional dynamics and corporate innovation: A pathway to sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2474-2488, June.
    18. Huang, Hongyun & Mbanyele, William & Wang, Fengrong & Song, Malin & Wang, Yuzhang, 2022. "Climbing the quality ladder of green innovation: Does green finance matter?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    19. Lewis Liu, 2024. "Green innovation, firm performance, and risk mitigation: evidence from the USA," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 24009-24030, September.
    20. Luis E. Villegas & Andrés A. Acuña-Duarte & César A. Salazar, 2023. "Corporate Social Responsibility and the Willingness to Eco-Innovate among Chilean Firms," Sustainability, MDPI, vol. 15(12), pages 1-19, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325016307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.