Can green finance improve the financial performance of green enterprises in China?

This paper constructs a regional green finance development index to examine the impact of green finance on the financial performance of green enterprises in China. We find that green finance can significantly enhance the financial performance of green enterprises through capital aggregation and information transmission. In addition, R&D innovation acts as a bridge in the influence of green finance. According to heterogeneity analysis, green finance tends to contribute more to clean energy enterprises and enterprises with less government subsidies. The findings contribute to the scientific evaluation of green financing strategy and lay the foundation for the decision-making of promoting the sustainable growth of green industries and enterprises.