The Impact of Fintech Development on Green Transformation of Private Enterprises—Empirical Evidence from China

In the context of Chinese-style modernization, the promotion of comprehensive green development within the economy is a crucial aspect of achieving high-quality development. The private economy plays an irreplaceable role in China’s economic framework, and the advancement of green development is intrinsically linked to the green transformation of private enterprises. However, many of these enterprises encounter many challenges that significantly hinder their green transformation efforts. At the same time, the rapid growth of Fintech offers a compelling impetus for transforming and upgrading the financial industry. Therefore, in the pursuit of high-quality development, it is particularly vital to accelerate the green transformation of private enterprises by leveraging the supportive role of the financial system. This paper analyzes A-share listed private enterprises in China and the city-level Fintech development index from 2011 to 2022, utilizing a two-way fixed-effects model for empirical analysis. The findings indicate that Fintech development facilitates private enterprises’ green transformations. Furthermore, the mechanism analysis reveals that the primary pathways through which this effect occurs are the alleviation of financing constraints and the enhancement of corporate innovation abilities. Notably, this effect is more pronounced among enterprises located in eastern regions and within heavily polluting industries. Based on these conclusions, this paper offers relevant recommendations for the government and private enterprises, aiming to foster the green transformation of private enterprises and contribute to sustainable societal development.