Can environmental investors stimulate corporate green technological innovation?—Evidence from China

Using a sample of A-share listed enterprises in the Shanghai and Shenzhen Stock Exchanges, this study shows that environmental investors can effectively stimulate green technological innovation measured by green patents. The stimulating effect is substantially heterogeneous across different types of enterprises and innovations. The mechanism analysis reveals that environmental investors promote green innovation mainly by increasing internal environmental investment rather than by obtaining more government subsidies. This study provides rare micro-evidence of the important role of independent environmental investors in green innovation.