CORPORATE FINANCIALIZATION AND GREEN TECHNOLOGY INNOVATION: EVIDENCE FROM CHINESE-LISTED MANUFACTURING COMPANIES

Abstract

We examine the relationship between corporate financialization and green technological innovation using data on manufacturing companies during 2007–2020. We find that corporate financialization reduces the level of green technology innovation. Heterogeneity analysis demonstrates that financialization’s impact on green technological innovation varies across different enterprise types, especially for private enterprises, high-tech enterprises, and enterprises in eastern and western regions. Moreover, financial constraints will strengthen the influence of financialization on green technological innovation while managerial myopia will weaken the influence of financialization. The empirical insights advance our understanding of the relationship and mechanisms between financial asset investment behavior and green technological innovation in manufacturing enterprises.