Green finance, investor preferences, and corporate green innovation

This research investigates the relationship between green finance and corporate green innovation. Based on a sample of publicly listed companies in China from 2015 to 2022, we find a significant positive association between green finance and green innovation of enterprises. The positive relationship is more pronounced among heavily polluting and financially constrained companies. Furthermore, investors' green preferences amplify the positive impact of green finance on green innovation. Our findings are robust to a series of econometric tests. The present study contributes to the literature on green finance and innovation.