Green investment funds and corporate green innovation: From the logic of social value

Yi Chi, Ning Hu, Dong Lu and Yang Yang

Energy Economics, 2023, vol. 119, issue C

Abstract: Under the background of how the green financial system contributes to the goal of carbon peaking and neutrality, this study explores the relationship between green investment funds (GIFs) and corporate green innovation (CGI) in Chinese listed firms. We propose a social value logic to explain the green investment of GIF in addition to its commercial value logic. We find that: (1) GIF can significantly improve CGI. (2) The positive effect of GIF on CGI is more obvious in state-owned enterprises, enterprises with a higher proportion of long-term GIF, and after a green financial system is proposed. (3) GIF is capable of contributing to the increase in stock returns, the mitigation of stock risk, and the achievement of a positive social valuation, including reducing resource consumption and increasing resource efficiency through the promotion of CGI. (4) GIFs can improve CGI by alleviating corporate financing constraints, and its rich industry experience helps to enhance CGI. This paper not only expands the research on the relationship between institutional investors and corporate innovation, but provides important insights on how the capital market can serve the green transformation of the real economy from the perspective of green investment.

Keywords: Green investment funds; Green innovation; Social value logic (search for similar items in EconPapers)
JEL-codes: G18 G28 G32 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:119:y:2023:i:c:s0140988323000300

DOI: 10.1016/j.eneco.2023.106532

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