Research On The Impact Of Financialization Of Heavily Polluting Enterprises On Corporate Green Innovatio

Since the reform and opening up,China has caused heavy environmental costs while maintaining rapid economic growth.With the increasing awareness of environmental protection,the traditional extensive growth model of high investment,high consumption and high emissions has no longer been recognized.How to achieve win-win economic growth and green environmental protection is an important problem that China is facing that needs to be solved urgently.As the leading force to protect the environment and promote economic growth,heavily polluting enterprises bear the important responsibility to promote China’s green development.Green innovation has the dual attributes of economic growth and environmental protection.It is a feasible way to ease the contradiction between resources and environment and promote green development.However,heavily polluting enterprises often face financial difficulties when they want to carry out green innovation.Therefore,under the high prosperity of the financial industry and the real estate industry,heavily polluting enterprises have to obtain short-term profits through the allocation of financial assets to alleviate the shortage of funds,which has deepened the degree of financialization of heavily polluting enterprises.According to the existing literature,some scholars believe that the financial behavior of enterprises can indeed improve the return on investment to a certain extent,achieve the purpose of improving the cash flow situation of enterprises and easing the pressure on enterprises’ funds,thus facilitating the green innovation of enterprises;However,some scholars believe that the high level of financialization may crowd out the green innovation investment of enterprises,and then hinder the green innovation of enterprises.In this context,it is particularly important to explore the impact of the financialization of heavily polluting enterprises on the green innovation of Chinese enterprises and the impact mechanism.This paper selects the data of listed enterprises in China’s heavy pollution industry from 2007 to 2021 as a sample,and deeply discusses the impact of the financialization of heavy pollution enterprises on their green innovation behavior and its mechanism.The specific contents include: by constructing a two-way fixed effect model,using empirical models to examine the impact of the financialization level of heavy pollution enterprises on their green innovation,And test whether financing constraints have intermediary effects in the process of heavily polluting enterprises’ financialization affecting enterprises’ green innovation.The main conclusions are as follows:(1)The "investment substitution" effect produced by the financialization of heavily polluting enterprises is greater than the "reservoir" effect,and the financialization of heavily polluting enterprises significantly inhibits the green innovation of enterprises.(2)The asset-liability ratio,equity concentration and total return on assets of heavily polluted enterprises can significantly affect the intensity of the inhibition of the financialization of heavily polluted enterprises on their green innovation.The higher the asset-liability ratio,higher equity concentration and lower total return on assets of heavily polluted enterprises will bring more inhibition to the impact of the financialization of heavily polluted enterprises on their green innovation.(3)Financing constraints have a partial intermediary effect in the process of heavily polluting enterprises’ financialization inhibiting enterprises’ green innovation.The level of heavily polluting enterprises’ financialization will increase the degree of financing constraints faced by enterprises,thus inhibiting their green innovation behavior.Finally,the conclusion of this paper enlightens that(1)in order to achieve the goal of promoting green innovation of enterprises,truly transform China’s extensive economic growth model,and achieve green economic transformation,enterprises,especially the heavily polluting enterprises,need to change their concepts,and must pay attention to the impact of enterprise financialization,require them to make reasonable use of the financial market and appropriately hold financial assets,Otherwise,the final result will only be that the enterprise will passively reduce emissions and fail to achieve the vision of endogenous green innovation.(2)Strengthen financial supervision,strengthen the punishment of financial violations of financial violations,and fundamentally expand the financing channels of heavily polluting enterprises and ease the financing constraints of enterprises.