Green Finance Policy and Corporate Green Innovation: Evidence from China’s Green Finance Reform and Innovation Pilot Zones

Against the backdrop of China’s continued pursuit of high-quality economic development and the accelerated implementation of its “dual carbon” goals, examining whether green finance policies can stimulate corporate green innovation is of considerable theoretical and practical significance. Using data on China’s A-share listed companies from 2010 to 2022, this study empirically investigates the effects of the Green Finance Reform and Innovation Pilot Zone policy on corporate green innovation and explores the underlying mechanisms. The main findings are as follows. First, the policy significantly promotes corporate green innovation, and this result remains robust after parallel-trends tests, placebo tests, and a series of additional robustness checks. Second, the policy operates through two main channels: financial support and information governance. On the one hand, it expands the availability of green credit and alleviates the financing constraints faced by firms in undertaking green R&D and project investment. On the other hand, it improves the quality of corporate ESG disclosure, enhances market transparency, and strengthens external monitoring, thereby encouraging corporate green innovation. Third, the heterogeneity analysis shows that the positive effect is more pronounced among state-owned enterprises, larger firms, and firms operating in heavily polluting industries.