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The green transition and tech firms' financial performance: Insights from patent data

Year: 2025

Type: article

Abstract: The twin transition, digital transition and green transition, is shaping the global business environment; however, academic research on the financial implications of the green-digital nexus is still limited. This paper explores one of the mechanisms within the green-digital nexus, knowledge creation and spillover. Quantified through patent data between 2010 and 2022, this study examines how tech firms' financial performance is affected by their knowledge creation and spillovers to green and brown domains using portfolio- and firm-level analyses. The results indicate that the positive financial connectedness between tech and renewable energy firms, as shown in the aggregated analyses, is not straightforward. While firm-level heterogeneity in knowledge creation affects excess returns, there is no conclusive evidence that knowledge spillovers affect financial performance.

Source: Global Finance Journal

DOI: 10.1016/j.gfj.2025.101112

Author: Selahattin Murat Sirin

Institution: King Abdullah Petroleum Studies and Research Center

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Climate action

Open Access status: hybrid

Estimated APC paid: $2,860