Work

Green innovation, financialization, and ESG performance

Year: 2025

Type: article

Abstract: Green innovation has the potential to drive low-carbon development and strengthen corporate ESG performance. However, the relationship between financialization and ESG performance remains complex and requires further investigation. This study conducts an empirical analysis to assess how green innovation influences ESG performance while examining the moderating ef- fect of financialization. A two-way fixed-effects model is applied to a sample of A-share-listed manufacturing firms in Shanghai and Shenzhen from 2009 to 2022. The results indicate that green innovation significantly enhances ESG performance, while financialization weakens this positive effect. Further heterogeneity analysis considers ownership structure, factor intensity, and geographic location. The results reveal that the positive impact of green innovation on ESG performance is more pronounced in non-state-owned en- terprises, technology-intensive firms, and enterprises in eastern China.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104404

Authors: Liangguo Xu, Xianglin Lu, Ziqing Zhang, Haicheng Shu

Institutions: Tibet University, Shijiazhuang University, Southwestern University of Finance and Economics

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Climate action

Open Access status: gold

Estimated APC paid: $1,930