Can financial flexibility enhance corporate green innovation performance? Evidence from an ESG approach in China

This paper empirically explores whether financial flexibility significantly affects corporate green innovation performance (CGIP), and by what means? What factors moderate the relationship between financial flexibility and CGIP? Are there differences across different types of firms, regions and industries? This study demonstrates that financial flexibility significantly enhances CGIP. Financial flexibility primarily facilitates green innovation by reducing corporate risk-taking and increasing non-efficiency investments. ESG performance negatively moderates the connection between financial flexibility and CGIP, while market competitiveness exerts a positive moderating effect on this relationship. The impact of…

• EC
  European Commission

  Awards: GRINS PE00000018\u2014CUP E83C22004690001, CUP B83C22002820006
• UD
  Università degli Studi di Roma Tor Vergata