Economic Policy Uncertainty and Green Innovation in Chinese Fintech Firms: The Moderating Role of Green Finance Policy

This study examines the relationship between economic policy uncertainty (EPU) and green innovation in Chinese fintech firms, with a particular focus on how green finance policies moderate this relationship. Using a comprehensive panel dataset of 7,640 firm-year observations from 2010 to 2023, we find that EPU negatively impacts green innovation activities, as measured by green patents and green R&D intensity. However, the implementation of green finance policies significantly mitigates this negative effect, suggesting that supportive regulatory frameworks can buffer firms against policy uncertainty. Our findings provide novel insights into the interplay between macroeconomic uncertainty, regulatory environment, and corporate environmental strategies in emerging economies. The results remain robust across various model specifications and alternative measures. Consequently, this findings have important implications for policymakers seeking to promote sustainable development in the financial technology sector amid economic uncertainty.