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Financial agglomeration, financing constraints, and corporate green technological innovation

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  • Wang, JiaJun
  • Du, Xinke
  • Hou, JiaLe
  • Si, JingJing
  • Jin, YanZhi

Abstract

This study, based on panel data from Chinese listed companies between 2008 and 2022, uses a two-way fixed effects model to systematically examine the mechanism through which financial agglomeration affects corporate green technological innovation. The research not only analyzes the mediating role of financing constraints in this process but also focuses on the moderating effect of corporate environmental responsibility (CER). The empirical analysis results show that financial agglomeration significantly enhances corporate innovation vitality in the field of green technology by effectively alleviating the funding bottleneck, thereby promoting corporate green technological innovation. In addition, the study confirms that CER is an important moderating variable that connects the relationship between financial agglomeration and green technological innovation performance. Further analysis reveals the variability of this impact effect in different geographical regions and industry categories. Specifically, in China's eastern coastal areas, the promotion effect of financial agglomeration on corporate green technological innovation is not significant; however, in the central and western inland areas, financial agglomeration demonstrates a significant positive incentive for corporate green technological innovation. From the industry perspective, the promotion effect of financial agglomeration on green technological innovation in high-tech industries has not been statistically verified, but its positive impact on green technological.

Suggested Citation

  • Wang, JiaJun & Du, Xinke & Hou, JiaLe & Si, JingJing & Jin, YanZhi, 2025. "Financial agglomeration, financing constraints, and corporate green technological innovation," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325019488
    DOI: 10.1016/j.frl.2025.108694
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