How digital finance impacts listed companies’ green innovation in China: a product market perspective

Abstract

We empirically test whether and how digital finance impact green innovation utilizing the data of Chinese listed companies over the period from 2011 to 2020. The results show: a) digital finance has a positive impact on green innovation, b) improving consumer demand and strengthening market competition are two important influence channels, c) customer concentration and corporate social responsibility are two important moderating variables that affect the aforementioned product market mechanisms, d) the positive impact of digital finance is more prominent within stateowned enterprises, companies with high financial risks, economically underdeveloped regions, and low-polluting industries. This research provides insights for China and similar economies on how to leverage the significant role of digital finance in achieving their net-zero-carbon targets.