How Does Social Financing Structure Affect Corporate Sustainable Development? A Dual Perspective on the Quantity and Quality of Green Innovation

The regional social financing structure is a critical external financing environment for enterprises. This environment influences corporate sustainable development by affecting firms’ resource allocation and shaping their preferences. This dynamic has not been sufficiently researched. To address this, this study uses data about Chinese non-financial listed companies and data about regional social financing structure to investigate the impact of different regional social financing structures on the quantity and quality of green innovation by enterprises in specific regions. The study finds that a higher degree of marketization in the regional social financing structure increases the quantity and quality of corporate green innovation. The regional social financing structure primarily affects corporate green innovation through the allocation of regional factor resources, investments by green investors, and managerial preferences. This research expands the literature concerning financial structure and corporate sustainable development. The results provide evidence relevant to financial marketization reforms and offer practical implications for firms seeking to strengthen green innovation performance, thereby contributing to sustainable development.