Does Green Finance Drive Financial Performance? A Panel Data Analysis with GMM Estimation

Abstract

Green finance has emerged as a prominent topic of discussion as the present generation increasingly recognizes the significance of a sustainable environment. This study employed a local Green Finance Development Index to analyze the substantial impact of green financing on the financial performance of environmentally conscious firms in China. Green finance serves as a fundamental motivator, enhancing the economic insight of environmentally responsible enterprises by strategically consolidating capital and facilitating the continuous interchange of essential information. The study utilizes actual data from 2012 to 2023, concentrating on green listed firms, to examine the relationship relating financial performance and green financing with the GMM estimation Model. This empirical study strengthens the scientific foundation of the green finance paradigm and creates a robust framework for decision-making, fostering the sustainable growth of green industries and enterprises. This empirical study strengthens the systematic foundation of the green finance paradigm and creates a robust framework for decision-making, facilitating the sustainable growth of green industries and enterprises.