Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)

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Does Local Government Debt Inhibit Corporate Green Innovation? Evidence From Listed Chinese Companies

Authors
Can Cui1, *, Dong Xiang1
1Business School, Shandong Normal University, Jinan, Shandong, China
*Corresponding author. Email: cucian20000129@163.com
Corresponding Author
Can Cui
Available Online 5 May 2025.
DOI
10.2991/978-94-6463-702-1_6How to use a DOI?
Keywords
local government debt; corporate green innovation; financing constraints
Abstract

In recent years, green development and increasing local government debt have become hot topics in China. Therefore, it is significant to study the impact of this debt on corporate sustainability, as in doing so, it is possible to explore the micro-consequences for corporations. In this study, we selected annual data from listed companies from 2007 to 2022 as the sample and empirically analyzed the influence of local government debt on corporate green innovation and the mechanisms involved. The empirical results show that local government debt exacerbates corporate financing constraints, thereby adversely affecting corporate green innovation. A further analysis showed that local government debt has a more significant adverse effect on firms with relatively concentrated shareholdings, firms with fewer independent directors, and firms in heavy-pollution industries. The findings of this paper provide some theoretical references and principles for local government debt management and government support for green innovation.

Copyright
© 2025 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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Volume Title
Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
5 May 2025
ISBN
978-94-6463-702-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-702-1_6How to use a DOI?
Copyright
© 2025 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.

Cite this article

risenwbib
TY  - CONF
AU  - Can Cui
AU  - Dong Xiang
PY  - 2025
DA  - 2025/05/05
TI  - Does Local Government Debt Inhibit Corporate Green Innovation? Evidence From Listed Chinese Companies
BT  - Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
PB  - Atlantis Press
SP  - 53
EP  - 60
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-702-1_6
DO  - 10.2991/978-94-6463-702-1_6
ID  - Cui2025
ER  -