The Effect of Green Innovation on Corporate Financial Performance

Abstract

This paper investigates the impact of green innovation on firms' financial performance. We collected data from 149 manufacturing companies listed on the HOSE and HNX stock exchanges between 2015 and 2020. To ensure the robustness of our findings, we employed five widely used regression techniques: Pooled OLS, Fixed Effects, Random Effects, GLS, and System GMM. The results reveal that green innovation-specifically green process innovation and green image-positively influences firms' financial performance. Additionally, firm size and total asset turnover are positively associated with financial performance, while financial leverage has a negative effect.