Green Finance Management and Corporate Sustainable Innovation: Evidence from a Dual-Path Mechanism

This study conceptualizes green finance management as a strategic managerial capability and investigates how it influences corporate sustainable innovation performance. Using a multi-industry panel of Malaysian listed firms from 2019–2024, fixed-effects regression and parallel mediation analysis are employed to examine the effects of green finance management on green innovation output and long-term financial performance, with R&D intensity and risk-taking capacity as mediators. Green finance management significantly enhances both green patents and long-term ROA. Its impact on green innovation operates primarily through two internal mechanisms: increased R&D intensity and expanded risk-taking capacity. When both mediators are included, the direct effect becomes insignificant, indicating a robust parallel mediation structure. Green finance functions through organizational reconfiguration rather than mechanical capital transfer, underscoring its managerial role in shaping sustainable innovation trajectories.