Green finance development on corporate sustainability: Evidence from china

Wan Zhang, Yuyao Zhang and Suitao Mou

Finance Research Letters, 2025, vol. 82, issue C

Abstract: We examine green finance development’s impact on corporate sustainability using panel data of Chinese A-share listed companies from 2010 to 2022. We investigate how green finance influences corporate sustainability via two key mechanisms: green innovation and environmental performance. Our findings reveal that green finance significantly enhances corporate sustainability, with more potent effects observed in firms with higher debt financing costs and regions with higher market competition and greater market development. Green credit, insurance, and investment significantly contribute to corporate sustainability. The research provides critical insights into how financial mechanisms can support sustainable corporate development, offering valuable guidance for policymakers and corporate managers seeking to promote ecology.

Keywords: Green finance; Corporate sustainability; Environmental performance; Financing constraints; Green innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007275

DOI: 10.1016/j.frl.2025.107468

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