Green innovation's impact on corporate financing: New insights from BRICS economies

Publication Name

Finance Research Letters

Abstract

Enterprises are increasingly adopting green innovation strategies to reduce their environmental footprint and enhance their competitive positioning. However, how this shift towards sustainability influences corporate financing is less known in the literature. Therefore, this study aims to investigate the impact of green innovation on corporate financing in BRICS countries. Using data from 2010 to 2022 and system GMM for analysis, it finds that green innovation positively influences corporate financing. This highlights the growing importance of sustainable practices in shaping financial decisions. The study adds to the literature on the link between environmental sustainability and corporate finance, emphasizing sustainability's role in corporate financial strategies.

Open Access Status

This publication is not available as open access

Volume

62

Article Number

105172

Funding Number

72272060

Funding Sponsor

National Natural Science Foundation of China

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Link to publisher version (DOI)

http://dx.doi.org/10.1016/j.frl.2024.105172