Green innovation: the role of government subsidies under the system of digital finance -based on a zero-inflated negative binomial model.

Green innovation is inevitable for improving the environment and achieving sustainable economic development. Using panel data of 3,076 enterprises listed on the Shenzhen and Shanghai stock from 2012 to 2021, the research employs the zero-inflated negative binomial (ZINB) regression to examine the impacts of government subsidies on corporate green innovation and the moderating effect of digital finance. Moreover, this paper investigates the impacts of ownership structure and industry heterogeneity. We find reliable evidence indicating a positive U-shape correlation between government subsidies and corporate green innovation. Moreover, the overall U-shape curve is elevated under the moderation of digital finance. Further analysis indicates that government subsidies significantly enhance the green innovation of non-state-owned and industrial enterprises. The findings herein provide new guidance for the government to stimulate corporate green innovation, balancing environmental quality and high-quality economic development. [ABSTRACT FROM AUTHOR]