Can digital finance promote corporate green innovation?

Green innovation is essential for improving the environment and realizing sustainable economic development. In this research, we use a sample of Chinese listed firms from 2011 to 2018 to examine whether and how digital finance affects corporate green innovation. The proof we provided shows that digital finance has a positive effect on green innovation. The result is consistent with a series of robustness tests. Further analyses show that digital finance promotes green innovation by alleviating financial constraints and increasing R&D investment. And the effect is more pronounced in economically backward regions and high-polluting industries. This research provides practical guidance for promoting finance development and improving the ecological environment.