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Green finance innovation and corporate resilience: Evidence from China's reform pilot zones

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  • Xu, Aiting
  • Dai, Yujie
  • Hu, Zhiyuan

Abstract

Using green finance innovative strategies has significantly improved the resilience of firms operating inside China's revamp pilot zones. This research, which is based on a multi-phase difference-in-differences technique and uses enterprise-level data covering the years 2015 through 2025, reveals that the effects are varied across different geographies, sectors, and firm characteristics. Among the primary drivers, the mechanism results indicate that digital conversion, better creative ability, and reduced finance restrictions are all critical factors. The emergence of some outcomes, such as those associated with the use of industrial robots, occurs with a temporal lag. This study's findings provide insights valuable to policymakers on how green financing influences the flexibility of businesses and promotes long-term sustainable growth.

Suggested Citation

  • Xu, Aiting & Dai, Yujie & Hu, Zhiyuan, 2025. "Green finance innovation and corporate resilience: Evidence from China's reform pilot zones," Research in Economics, Elsevier, vol. 79(4).
    • Handle: RePEc:eee:reecon:v:79:y:2025:i:4:s1090944325000432
    DOI: 10.1016/j.rie.2025.101066
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    Cited by:

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    2. Cao, Fuzhen & An, Yi & Xie, Wei, 2025. "Chinese exchange rate policy uncertainty, foreign exchange hedging, and corporate resilience," Finance Research Letters, Elsevier, vol. 86(PG).
    3. Wang, Jianbo & Niu, Dayong & Kang, Jing, 2025. "Can national industrial investment funds enhance enterprise resilience?," Finance Research Letters, Elsevier, vol. 85(PC).
    4. Li, Xintian & Yong, Hui, 2025. "The impact of green finance on the environmental performance of industrial enterprises: The moderating role of digital transformation," Finance Research Letters, Elsevier, vol. 86(PG).

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