Title:Over-financialization and green innovation: the moderating role of digitalization
Abstract：Although prior research has explored the impact of financialization on innovation, the effects of over-financialization on green innovation remain underexamined. Using data from Chinese listed enterprises between 2007 and 2022, this study examines the effects of over-financialization and digitalization on green innovation. The findings indicate a negative relationship between over-financialization and green innovation, which aligns with theories of shareholder value maximization, resource allocation, and risk aversion. In contrast, firms with higher degrees of digitalization show increased levels of green innovation. Importantly, this positive relationship between digitalization and green innovation holds for both over-financialized and non-over-financialized firms, although the effect is more pronounced in the latter group. This study contributes to a deeper understanding of the interactions between over-financialization, digitalization, and green innovation, providing insights for navigating the complex landscape of sustainable innovation.
DOI:https://doi.org/10.1057/s41599-025-05147-6
