IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v104y2025ics1059056025007993.html

Strategic or substantive: The role of green finance in shaping enterprise green innovation

Author

Listed:
  • Qin, Qi
  • Gao, Da
  • Tan, Linfang

Abstract

As an essential driver of sustainable development, green finance (GF) is crucial in improving firms' green innovation (GI). However, whether green finance primarily influences strategic or substantive GI remains unclear. Based on institutional theory and principal-agent theory, this study investigates the influence of GF on both strategic and substantive GI performance in China's A-share listed companies from 2010 to 2020. This study also analyzes the moderating role of internal and external corporate governance factors. The results show that GF significantly promotes strategic GI performance, while the relationship between GF and substantive GI performance exhibits an inverted U-shaped pattern. In addition, environmental regulation and managers' environmental concerns negatively moderate the relationship between GF and strategic GI performance, but positively moderate the relationship between GF and substantive GI performance. Further, GI positively affects both enterprises' green and economic performance, although the improvement in economic performance is relatively slow. This study provides policymakers with theoretical foundations and practical guidance in formulating effective environmental policies.

Suggested Citation

  • Qin, Qi & Gao, Da & Tan, Linfang, 2025. "Strategic or substantive: The role of green finance in shaping enterprise green innovation," International Review of Economics & Finance, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:reveco:v:104:y:2025:i:c:s1059056025007993
    DOI: 10.1016/j.iref.2025.104636
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025007993
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.104636?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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zheng, Qingying & Li, Handan & Bu, Guochao & Liu, Hongxun, 2026. "Navigating green innovation: The role of carbon regulation and green finance in corporate strategy," Energy Economics, Elsevier, vol. 153(C).

    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:reveco:v:104:y:2025:i:c:s1059056025007993. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/inca/620165 .

    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.