Assessing the impact of green finance on financial performance in Chinese eco-friendly enterprise

• Published in: Heliyon Vol. 10; no. 7; p. e29075
• Main Authors: Li, Yanru, Lin, Anqiang
• Format: Journal Article
• Language: English
• Published: England Elsevier Ltd 15-04-2024; Elsevier
• Subjects: Financial performance; Green enterprises; Green finance; Research and development; Financial performance; Green finance; Green enterprises; Research and development
• ISSN: 2405-8440; 2405-8440
• DOI: 10.1016/j.heliyon.2024.e29075

This study pioneers the construction of a regional Green Finance Development Index, meticulously examining the significant influence of green financing on the financial performance of ecologically responsible enterprises within the intricate landscape of China. Demonstrating a profound correlation, green finance emerges as a pivotal incentive, increasing the economic expertise of environmentally conscientious firms through the strategic consolidation of capital and the consistent exchange of vital information. Leveraging empirical data from 2012 to 2022 and focusing on green-listed enterprises, the study analyzes the nexus between green financing and corporate financial competency by employing the GMM Model. Notably, the study highlights the pivotal role of Research and Development (R&D) innovation as a channel for the transformative impact exercised by green funding. Discerning insights surface in exploring heterogeneity, revealing a pronounced inclination of green financing towards strengthening clean energy firms and enterprises operating with diminished reliance on government subsidies. This empirical research enhances the scientific basis of the green finance approach and establishes a strong platform for making decisions, promoting the sustainable proliferation of green sectors and businesses.