Study On The Relationship Between Green Innovation And Financial Performance Of Baosteel Corporation

In order to achieve high-quality development in China,enterprises must always uphold the concept of green development in the process of technological innovation and support sustainable development with green innovation.However,the report shows that the layout of green patents in domestic enterprises is not very satisfactory,and the enthusiasm for green innovation is generally poor,and studying the relationship between green innovation and financial performance and the path of influence to explore whether green innovation can improve the financial performance of enterprises.can enhance enterprises’ enthusiasm for innovation.Based on the sustainable development theory and signaling theory,this paper constructs a VAR model to study the relationship between green innovation and financial performance using Baosteel as a case study,and draws the influence trajectory between the two through impulse response function.The research results show that the relationship between green innovation and financial performance is inhibited in the short term and promoted in the long term.The paper then further analyses the impact paths of green innovation on financial performance and finds that green innovation inhibits financial performance in the short term by increasing investment in environmental research and development and increasing sales and operating costs,and promotes financial performance in the long term through three main paths,including improving corporate profitability,reducing operational risk and building a good corporate image.Meanwhile,this paper analyses the impact of financial performance on green innovation,and finds that financial performance may inhibit green innovation in the short term due to the crowding-out effect of capital and the long-period nature of patents,but in the long term financial performance can provide sufficient R&D funds for green innovation,and can also attract and train R&D talents by providing favorable treatment and professional technical training,thus improving the quality of green innovation.In the long run,however,financial performance can provide sufficient R&D funds for green innovation.Finally,this paper proposes suggestions from the government,enterprises and society to improve the incentive system for green innovation and strengthen the protection of green patents,to provide reference for enterprises to formulate green development strategies,carry out green innovation practices and accelerate the transformation of innovation results,and to provide suggestions for society to strengthen the promotion of green innovation knowledge and fulfil its environmental protection monitoring responsibilities.