Green Investment and the Corporate Financial Performance of Listed Manufacturing Firms in China: Examining the Moderation Role of Ownership

Against the backdrop of China’s “dual carbon” strategy and green transformation, this study examines the impact of green investment on corporate financial performance and the moderating role of state-owned shareholding ratio. Using a sample of Chinese A-share listed manufacturing firms from 2014 to 2023 and adopting a dynamic panel data model, the empirical results show that green investment significantly improves corporate financial performance. Moreover, state-owned shareholding plays a negative moderating role, and high state ownership weakens the positive effect of green investment on financial performance. The results indicate that green investment can enhance profitability by improving operational efficiency, reducing compliance risks and enhancing corporate reputation. However, due to policy burdens, multiple agency problems and insufficient profit incentives, state-owned enterprises tend to deviate from efficiency-oriented goals in green investment, which reduces the economic returns of such investment. This study enriches the understanding of the economic consequences of green investment under heterogeneous ownership, and provides empirical support for enterprises to optimize green investment decisions and regulators to improve governance mechanisms.