Government-guided fund, social resources, and corporate green innovation

Panpan Hao, Yuchen Wang and Liyan Fan

International Review of Financial Analysis, 2025, vol. 98, issue C

Abstract: This study examines the impact of government-guided funds (GGF) on corporate green innovation using data from China's A-share listed companies from 2012 to 2022. Multiple regression model analyses found that government-guided fund investments significantly elevate the level of corporate green innovation, a conclusion supported by robustness and endogeneity tests. Furthermore, this study investigates the mediating role of social resources and the heterogeneous influence of firm ownership and regional location. Results indicate that government-guided funds directly and indirectly facilitate green innovation by increasing social resources. State-owned enterprises (SOEs) and enterprises located in eastern China exhibit more pronounced green innovation enhancement from government-guided fund investments, whereas the promotion effect is relatively weaker for non-SOEs and those in central and western China. Thus, this study suggests increasing investments in government-guided funds, improving the social resource support system, strengthening policy guidance and support, and fostering a corporate innovation culture. In summary, government-guided funds play a pivotal role in driving corporate green innovation; however, further refinement of policies and the social resource support system is necessary.

Keywords: Government-guided fund; Social resource; Corporate green innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:98:y:2025:i:c:s1057521924008305

DOI: 10.1016/j.irfa.2024.103898

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