Nexus between corporate environmental performance and corporate environmental responsibility on innovation performance

In recent times, businesses have been dealing with a multifaceted mix of social, environmental, and technical trends. This necessitates improved sustainability-based management and Corporate Environmental Responsibility (CER) engagement, emphasizing the importance of understanding the influence of Corporate Environmental Performance (CEP) on innovation performance and economic consequences. The current study investigates this relationship by looking at how banks funding and government subsidies in China affect the relationship between innovation performances and financing constraints through a quantitative analysis from 2008 to 2017. The findings not only revealed a statistically significant association and influence of CEP on Chinese business innovation performance and financing restrictions, they also confirm the mediating role of bank funding on innovation performance and financing constraints. All CER's CEP indicators had a favorable and significant impact on innovation performance, although the mediation of banking finance was particular to innovation performance and financing restrictions. They also reveal a negative significant influence of CEP on budgetary restrictions. Since a proactive environmental strategy has no negative economic effects, the report advises Chinese listed companies to incorporate CER participation to boost innovation and ease financing limitations.