The Role of Corporate Profit Margins in Promoting Green Innovation

DOI

10.2991/978-94-6239-777-4_59How to use a DOI?

Keywords

Corporate Profit Margins; Green Innovation; OLS

Abstract

Against the backdrop of China’s vigorous promotion of new-quality productive forces and the comprehensive green transformation of its economy and society, the synergistic development of corporate profitability and green innovation (CGI) has attracted significant attention. This study uses Chinese A-share listed companies from 2011 to 2024 as its sample and employs a two-way fixed-effects model to empirically examine the impact of corporate profit margins on CGI. The results indicate that corporate profit margins have a significant positive impact on CGI. Higher profitability provides enterprises with stable internal funding, alleviates financing constraints, and enhances risk-bearing capacity, thereby promoting green R&D investment and green patent output. Heterogeneity analysis reveals that this promotional effect is more pronounced in central and western regions, non-high-tech industries, and high-pollution areas. This study enriches the existing literature on how corporate financial performance drives CGI, providing empirical evidence and policy implications for firms to optimize resource allocation, for governments to formulate differentiated green incentive policies, and for fostering the synergistic development of corporate profitability and green transformation.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ziye Shi
PY  - 2026
DA  - 2026/09/30
TI  - The Role of Corporate Profit Margins in Promoting Green Innovation
BT  - Proceedings of the 2026 8th International Conference on Economic Management and Cultural Industry (ICEMCI 2026)
PB  - Atlantis Press
SP  - 561
EP  - 566
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-777-4_59
DO  - 10.2991/978-94-6239-777-4_59
ID  - Shi2026
ER  -