ABSTRACT While green development goals emphasize technological innovation, the role of ownership structure remains debated. Multiple large shareholders can foster innovation through enhanced governance, or conversely, impede it through collusion. Using data from A‐share listed companies (2007–2023), this research examines how multiple large shareholders affect corporate green technology innovation. Empirical analysis demonstrates that such ownership structures produce statistically significant enhancement in promoting green technology innovation by constraining controlling shareholders' tunnelling behaviours. Further analysis shows that such an effect manifests more prominently in firms with foreign shareholders and in non‐state‐owned enterprises. Additionally, leveraging exogenous shocks from green finance policies, we confirm a synergistic governance effect between green finance pilot zones and multiple large shareholders. Finally, we explore the long‐term financial and environmental benefits of green technology innovation. Our study illustrates the governance mechanism of ownership structure affecting green technology innovation, filling a key gap in the green finance literature while providing a micro‐level theoretical foundation for a market‐driven green technology innovation system.
Wang et al. (Wed,) studied this question.