OpenLB
Open Library of Bioscience
Advanced Search
Environmental science and pollution research international
Jan, 2024;31 (1): 371-383.

Digital finance and green innovation efficiency: empirical data from Chinese listed manufacturing companies.

Hongyu Lu, Zhao Cheng
Author Information
  1. Hongyu Lu: School of Economics, Tianjin University of Finance and Economics, Tianjin, 300222, China. tjufe2023@163.com. ORCID
  2. Zhao Cheng: School of Economics and Management, University of Science and Technology Beijing, Beijing, 100083, China.
PMID: 38012496 DOI: 10.1007/s11356-023-31153-9

Abstract

Amid the flourishing digital economy, digital finance overcomes the constraints of the conventional financial model and largely improves the supply efficiency and use of funds. This provides new opportunities for manufacturing corporations to improve their green innovation efficiency. Employing Chinese Shenzhen and Shanghai A-share listed manufacturing corporations between 2011 and 2021, this paper conducts an empirical analysis to study the effect of digital finance on corporate green innovation efficiency. Discoveries suggest that digital finance significantly improves manufacturing corporations' green innovation efficiency. After a few robustness tests, the results are still accurate. According to a mechanism analysis, digital finance increases the effectiveness of green innovation in manufacturing corporations by removing financing constraints. According to the heterogeneity analysis, the impact of digital finance on manufacturing corporations exhibits distinctive financial and geographical regional heterogeneity, particularly accentuated in Zhejiang Province and the central and western regions. This paper can provide a valuable reference for digital finance in supporting manufacturing corporations in green innovation ventures and improving the level of green innovation in the context of digitalization.

Keywords

Digital finance Financing constraints Green innovation efficiency Manufacturing corporations

References

  1. Agarwal S, Hauswald R (2010) Distance and private information in lending. Rev Financ Stud 23(7):2757���2788. https://doi.org/10.1093/rfs/hhq001 [DOI: 10.1093/rfs/hhq001]
  2. Alessandrini P, Presbitero AF, Zazzaro A (2009) Banks, distances and firms��� financing constraints. Int Rev Financ 13(2):261���307. https://doi.org/10.1093/rof/rfn010 [DOI: 10.1093/rof/rfn010]
  3. Aghion P, Howitt P (1990) A model of growth through creative destruction. https://doi.org/10.3386/w3223
  4. Aghion P, Howitt P (2006) Appropriate growth policy: a unifying framework. J Eur Econ Assoc 4(2-3):269���314. https://doi.org/10.1162/jeea.2006.4.2-3.269 [DOI: 10.1162/jeea.2006.4.2-3.269]
  5. Amore MD, Bennedsen M (2016) Corporate governance and green innovation. J Environ Econ Manag 75:54���72. https://doi.org/10.1016/j.jeem.2015.11.003 [DOI: 10.1016/j.jeem.2015.11.003]
  6. Berger AN, Miller NH, Petersen MA, Rajan RG, Stein JC (2005) Does function follow organizational form? Evidence from the lending practices of large and small banks. J Financ Econ 76(2):237���269. https://doi.org/10.1016/j.jfineco.2004.06.003 [DOI: 10.1016/j.jfineco.2004.06.003]
  7. Barbieri N, Marzucchi A, Rizzo U (2020) Knowledge sources and impacts on subsequent inventions: do green technologies differ from non-green ones? Res Policy 49(2):103901. https://doi.org/10.1016/j.respol.2019.103901 [DOI: 10.1016/j.respol.2019.103901]
  8. Bartik T (2006) How do the effects of local growth on employment rates vary with initial labor market conditions? https://doi.org/10.2139/ssrn.1372814
  9. Braun E, Wield D (1994) Regulation as a means for the social control of technology. Tech Anal Strat Manag 6(3):259���272. https://doi.org/10.1080/09537329408524171 [DOI: 10.1080/09537329408524171]
  10. Corradini M, Costantini V, Mancinelli S, Mazzanti M (2014) Unveiling the dynamic relation between R&D and emission abatement: national and sectoral innovation perspectives from the EU. Ecol Econ 102:48���59. https://doi.org/10.1016/j.ecolecon.2014.03.017 [DOI: 10.1016/j.ecolecon.2014.03.017]
  11. Chong TTL, Lu L, Ongena S (2013a) Does banking competition alleviate or worsen credit constraints faced by small-and medium-sized enterprises? Evidence from China J Bank Financ 37(9):3412���3424. https://doi.org/10.1016/j.jbankfin.2013.05.006 [DOI: 10.1016/j.jbankfin.2013.05.006]
  12. Carri��n-Flores CE, Innes R (2010) Environmental innovation and environmental performance. J Environ Econ Manag 59(1):27���42. https://doi.org/10.1016/j.jeem.2009.05.003 [DOI: 10.1016/j.jeem.2009.05.003]
  13. Chong TTL, Lu L, Ongena S (2013b) Does banking competition alleviate or worsen credit constraints faced by small-and medium-sized enterprises? Evidence from China J Bank Financ 37(9):3412���3424. https://doi.org/10.1016/j.jbankfin.2013.05.006 [DOI: 10.1016/j.jbankfin.2013.05.006]
  14. Cruz-C��zares C, Bayona-S��ez C, Garc��a-Marco T (2013) You can���t manage right what you can���t measure well: technological innovation efficiency. Res Policy 42(6-7):1239���1250. https://doi.org/10.1016/j.respol.2013.03.012 [DOI: 10.1016/j.respol.2013.03.012]
  15. Degryse H, Ongena S (2005) Distance, lending relationships, and competition. J Financ 60(1):231���266. https://doi.org/10.1111/j.1540-6261.2005.00729.x [DOI: 10.1111/j.1540-6261.2005.00729.x]
  16. Feng S, Zhang R, Li G (2022) Environmental decentralization, digital finance and green technology innovation. Struct Chang Econ Dyn 61:70���83. https://doi.org/10.1016/j.strueco.2022.02.008 [DOI: 10.1016/j.strueco.2022.02.008]
  17. Fang Z, Razzaq A, Mohsin M, Irfan M (2022) Spatial spillovers and threshold effects of internet development and entrepreneurship on green innovation efficiency in China. Technol Soc 68:101844. https://doi.org/10.1016/j.techsoc.2021.101844 [DOI: 10.1016/j.techsoc.2021.101844]
  18. Guo F, Wang J, Wang F, Kong T, Zhang X, Cheng Z (2020) Measuring China���s digital financial inclusion: index compilation and spatial characteristics. China Econ Quart 19(4):1401���1418 (in Chinese)
  19. Gomber P, Kauffman RJ, Parker C, Weber BW (2018) On the fintech revolution: interpreting the forces of innovation, disruption, and transformation in financial services. J Manag Inf Syst 35(1):220���265. https://doi.org/10.1080/07421222.2018.1440766 [DOI: 10.1080/07421222.2018.1440766]
  20. Hottenrott H, Peters B (2012) Innovative capability and financing constraints for innovation: more money, more innovation? Rev Econ Stat 94(4):1126���1142. https://doi.org/10.1162/REST_a_00227 [DOI: 10.1162/REST_a_00227]
  21. Huang Y, Huang Z (2018) The development of digital finance in China: present and future. China Econ Quart 17(4):205���218 (in Chinese)
  22. Huang Z, Liao G, Li Z (2019) Loaning scale and government subsidy for promoting green innovation. Technol Forecast Soc Change 144:148���156. https://doi.org/10.1016/j.techfore.2019.04.023 [DOI: 10.1016/j.techfore.2019.04.023]
  23. Hollander S, Verriest A (2016) Bridging the gap: the design of bank loan contracts and distance. J Financ Econ 119(2):399���419. https://doi.org/10.1016/j.jfineco.2015.09.006 [DOI: 10.1016/j.jfineco.2015.09.006]
  24. Hu C, Mao J, Tian M, Wei Y, Guo L, Wang Z (2021) Distance matters: investigating how geographic proximity to ENGOs triggers green innovation of heavy-polluting firms in China. J Environ Manag 279:111542. https://doi.org/10.1016/j.jenvman.2020.111542 [DOI: 10.1016/j.jenvman.2020.111542]
  25. Jin Y, Gao X, Wang M (2021) The financing efficiency of listed energy conservation and environmental protection firms: evidence and implications for green finance in China. Energy Policy 153:112254. https://doi.org/10.1016/j.enpol.2021.112254 [DOI: 10.1016/j.enpol.2021.112254]
  26. Kshetri N (2016) Big data���s role in expanding access to financial services in China. Int J Inf Manag 36(3):297���308. https://doi.org/10.1016/j.ijinfomgt.2015.11.014 [DOI: 10.1016/j.ijinfomgt.2015.11.014]
  27. Liu J, Jiang Y, Gan S, He L, Zhang Q (2022) Can digital finance promote corporate green innovation? Environ Sci Pollut R 29(24):35828���35840. https://doi.org/10.1007/s11356-022-18667-4 [DOI: 10.1007/s11356-022-18667-4]
  28. Li G, Zhang R, Feng S, Wang Y (2022) Digital finance and sustainable development: evidence from environmental inequality in China. Bus Strateg Environ 31(7):3574���3594. https://doi.org/10.1002/bse.3105 [DOI: 10.1002/bse.3105]
  29. Lin B, Ma R (2022) How does digital finance influence green technology innovation in China? Evidence from the financing constraints perspective. J Environ Manag 320:115833. https://doi.org/10.1016/j.jenvman.2022.115833 [DOI: 10.1016/j.jenvman.2022.115833]
  30. Ozili PK (2018) Impact of digital finance on financial inclusion and stability. Borsa Istanbul Rev 18(4):329���340. https://doi.org/10.1016/j.bir.2017.12.003 [DOI: 10.1016/j.bir.2017.12.003]
  31. Ouyang X, Li Q, Du K (2020) How does environmental regulation promote technological innovations in the industrial sector? Evidence from Chinese provincial panel data. Energy Policy 139:111310. https://doi.org/10.1016/j.enpol.2020.111310 [DOI: 10.1016/j.enpol.2020.111310]
  32. Presbitero AF, Rabellotti R (2014) Geographical distance and moral hazard in microcredit: evidence from Colombia. J Int Dev 26(1):91���108. https://doi.org/10.1002/jid.2901 [DOI: 10.1002/jid.2901]
  33. Pan Z, Liu L, Bai S, Ma Q (2021) Can the social trust promote corporate green innovation? Evidence from China. Environ Sci Pollut R 28(37):52157���52173. https://doi.org/10.1007/s11356-021-14293-8 [DOI: 10.1007/s11356-021-14293-8]
  34. Rennings K (2000) Redefining innovation���eco-innovation research and the contribution from ecological economics. Ecol Econ 32(2):319���332. https://doi.org/10.1016/S0921-8009(99)00112-3 [DOI: 10.1016/S0921-8009(99)00112-3]
  35. Rao S, Pan Y, He J, Shangguan X (2022) Digital finance and corporate green innovation: quantity or quality? Environ Sci Pollut R 29(37):56772���56791. https://doi.org/10.1007/s11356-022-19785-9 [DOI: 10.1007/s11356-022-19785-9]
  36. Tang S, Wu X, Zhu J (2020) Digital finance and enterprise technology innovation: structural feature, mechanism identification and effect difference under financial supervision. Manage World 36(5):52���66 (in Chinese)
  37. Whited TM, Wu G (2006) Financial constraints risk. Rev Financ Stud 19(2):531���559. https://doi.org/10.1093/rfs/hhj012 [DOI: 10.1093/rfs/hhj012]
  38. Wang M, Li X, Wang S (2021) Discovering research trends and opportunities of green finance and energy policy: a data-driven scientometric analysis. Energy Policy 154:112295. https://doi.org/10.1016/j.enpol.2021.112295 [DOI: 10.1016/j.enpol.2021.112295]
  39. Yu CH, Wu X, Zhang D, Chen S, Zhao J (2021) Demand for green finance: resolving financing constraints on green innovation in China. Energy Policy 153:112255. https://doi.org/10.1016/j.enpol.2021.112255 [DOI: 10.1016/j.enpol.2021.112255]
  40. Zhang J, Kang L, Li H, Ballesteros-P��rez P, Skitmore M, Zuo J (2020) The impact of environmental regulations on urban green innovation efficiency: the case of Xi���an. Sustain Cities Soc 57:102123. https://doi.org/10.1016/j.scs.2020.102123 [DOI: 10.1016/j.scs.2020.102123]

MeSH Term

China
Commerce
Economic Development
Geography
Journal Article

Word Cloud

Created with Highcharts 10.0.0financeinnovationdigitalmanufacturinggreencorporationsefficiencyconstraintsanalysisfinancialimprovesChineselistedpaperempiricalAccordingheterogeneityDigitalAmidflourishingeconomyovercomesconventionalmodellargelysupplyusefundsprovidesnewopportunitiesimproveEmployingShenzhenShanghaiA-share20112021conductsstudyeffectcorporateDiscoveriessuggestsignificantlycorporations'robustnesstestsresultsstillaccuratemechanismincreaseseffectivenessremovingfinancingimpactexhibitsdistinctivegeographicalregionalparticularlyaccentuatedZhejiangProvincecentralwesternregionscanprovidevaluablereferencesupportingventuresimprovinglevelcontextdigitalizationefficiency:datacompaniesFinancingGreenManufacturing

Similar Articles

Cited By

No available data.