Fintech development and green innovation

Abstract

Based on the data of Chinese A-share listed companies from 2011 to 2018, We study the impact of the development of fintech on enterprises’ green innovation. In the empirical analysis, we use the two-way fixed effect model to address fintech’s influence on green innovation, then using mediation effect test and robust test to further analyze and verify this effect. This study finds that the development of fintech can significantly promote the level of green innovation of enterprises. The mechanism could be that the information asymmetry: 1) reduces the degree of information asymmetry; 2) alleviates the financing constraints; 3) improves the willingness to invest in innovation.