Green innovation's impact on corporate financing: New insights from BRICS economies

Lu Li, Shiqi Zhou, Wei Xu and Jiapeng Dai

Finance Research Letters, 2024, vol. 62, issue PB

Abstract: Enterprises are increasingly adopting green innovation strategies to reduce their environmental footprint and enhance their competitive positioning. However, how this shift towards sustainability influences corporate financing is less known in the literature. Therefore, this study aims to investigate the impact of green innovation on corporate financing in BRICS countries. Using data from 2010 to 2022 and system GMM for analysis, it finds that green innovation positively influences corporate financing. This highlights the growing importance of sustainable practices in shaping financial decisions. The study adds to the literature on the link between environmental sustainability and corporate finance, emphasizing sustainability's role in corporate financial strategies.

Keywords: BRICS; Corporate financing; Debt financing; Equity financing; Green innovation (search for similar items in EconPapers)
JEL-codes: G32 Q55 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002022

DOI: 10.1016/j.frl.2024.105172

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