GREEN FINANCE POLICY AND TECHNOLOGICAL INNOVATION: EVIDENCE FROM 35 CHINESE AUTOMOTIVE FIRMS (2013–2023)

This study examines how China’s green finance development relates to corporate technological innovation in the automotive industry. Using firm–year observations from 2013–2023 for leading Chinese automotive firms, technological innovation is measured through patent applications and patent grants, expressed as logarithmic outcomes. Green finance is proxied by a national annual index, reflecting the macro policy-finance environment faced by firms each year. To address missing values in firm-level covariates, the analysis employs multiple imputation (m = 5) and reports pooled estimates. Across baseline models with standard controls, green finance is associated with lower patent applications, while the relationship with patent grants is weaker and generally statistically insignificant. Policy-timing analysis around the 2016 green finance policy shift provides limited evidence of differential effects, and additional robustness checks including alternative cutoffs (lead/placebo timing) and pre/post subsample regressions support the overall pattern. Lag models indicate that the negative association is more pronounced for patent applications with one- to two-year delays, whereas patent grants remain comparatively insensitive. Collectively, the findings suggest that macro green finance expansion does not translate mechanically into short-run increases in firm innovation outputs, and that firm fundamentals such as R&D, subsidies, and profitability remain central correlates of innovation performance. The results provide practical implications for policy design and corporate strategy in green transition contexts.