The impact of technology finance on corporate green innovation

Liang, T. and Zhang, L. and Fabus, M. and Zhou, C. and Ailikamujiang, A. (2025) The impact of technology finance on corporate green innovation. Finance Research Letters, 86: 108553. ISSN 1544-6123

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Abstract

This study examines the impact of integrating technology and finance on corporate green innovation, drawing on a quasi-natural experiment from China's pilot program between 2007 and 2023. Employing a multi-period difference-in-differences (DID) framework, the research provides robust evidence that these tech-finance policies significantly bolster firm-level green innovation. Further analysis reveals that this positive effect is primarily channeled through two mechanisms: increased R&D investment and enhanced environmental information transparency. Conversely, the findings indicate that stricter financial regulation attenuates this beneficial impact. Heterogeneity analysis confirms the policy's effectiveness is more pronounced among privately-held, technology-intensive firms and those located in China's eastern regions.