The impact of digital financial inclusion development on corporate green technology innovation: evidence from Chinese listed companies

Digital financial inclusion (DFI) – an emerging model integrating traditional finance with digital technologies – provides enterprises with accessible, diversified, and low-cost financing for innovation activities. Green technology innovation (GTI) is crucial for corporate sustainability and competitiveness. However, its dual nature as both ‘innovative’ and ‘green’ exposes firms to high financing costs and risks, highlighting the need for novel financing mechanisms. This study examines whether and how DFI promotes corporate GTI. Using data from Chinese listed companies, the empirical analysis shows that DFI indeed facilitates GTI. The effect is stronger for state-owned enterprises, firms in central or western China, and those in regions with stricter environmental regulations. Moreover, the impact of DFI on corporate performance through GTI exhibits a time lag, with benefits emerging after three periods. Compared with prior research, this study contributes theoretically by clarifying DFI’s role in GTI from a corporate strategic management perspective and elucidating its underlying mechanisms. Practically, the findings offer insights for China’s digital finance development strategy, financial sector transformation, and corporate investment decision-making.