Can green finance supports improve environmental firm performance? Evidence from listed environmental firms in China

This study analyzes how green finance supports affect environmental protection firms' economic and social performance. Furthermore, we explore how financing constraints and technological advancements mediate such relationship among the Chinese A-share market from 2014 to 2021. Findings reveal that supports in sustainable financial practices positively affect the social performance of firms, whereas an inverse U-shaped relationship exists between green finance supports and economic performance. Moreover, green finance support initiatives improve firms' social and economic performance by lowering financing barriers and fostering innovation.