Green Investment Funds and Corporate Green Innovation : from the Explanation of Social Value Logic

Under the background of how the green financial system can contribute to the goal of carbon peaking and carbon neutrality, this study explores the relationship between green investment funds (GIF) and corporate green innovation (CGI). We proposed the logic of social value to explain the green investment of GIF in addition to commercial value logic. We found that: (1) GIF can significantly improve CGI. (2) The green innovation promotion effect of GIF is more pronounced in state-owned enterprises, enterprises with a higher proportion of long-term GIF, and after the green financial system initiative was issued. (3) GIF increased CGI may prompt lower market risk and higher excess returns and can help companies obtain a positive environment evaluation, reduce resource consumption and improve resource efficiency. (4) GIF can alleviate corporate financing constraints, and their rich industry experience helps to enhance CGI. This paper not only expands the research on the relationship between institutional investors and corporate innovation but provides important insights on how the capital market can serve the green transformation of the real economy from the perspective of green investment