Digital Finance Enables Green Innovation in New Energy Companies

Abstract

Digital finance development has an important role in promoting economic transformation and has become a new engine leading the development of the real economy, while green innovation is an important goal of the current economic transformation to a green and sustainable one. Based on the panel data of Shanghai and Shenzhen A-share listed companies from 2008 to 2018, this paper finds that digital finance has a significant promoting effect on the green innovation of new energy enterprises through panel data fixed effects regression model. Furthermore, through sub-sample regression, it is found that the promotion effect of digital finance on new energy enterprises is heterogeneous, and the promotion effect is more significant for state-owned enterprises and enterprises with more decentralized power. The above findings of this paper have important implications for the current economic transformation in China.