Effect of Financial Support on the Green Technology Innovation of China’s Equipment-Manufacturing Enterprises

Green technology innovation (GTI) promotes the green, low-carbon transformation of equipment-manufacturing enterprises, helping to achieve sustainable development. Providing financial support for GTI can help alleviate firms’ financing constraints. Based on evolutionary game theory, this study analyzes the effect of financial support on GTI using a sample of listed Chinese equipment-manufacturing companies spanning 2015–2022. The results show that the combined support of financial institutions and the government can support enterprises’ GTI. Furthermore, the strength of financial support and the quality of environmental information disclosure affect firms’ willingness to undertake GTI. The empirical study shows that while credit support and government support positively affect firms’ GTI, equity support has a significant negative effect. Heterogeneity analysis shows that credit and government support can more effectively promote firms’ GTI when there is high-quality environmental information disclosure and intense market competition; equity support, meanwhile, has an inhibiting effect. This study enriches the literature on financial support’s effect on GTI in the equipment-manufacturing industry and can help guide governments and financial institutions to formulate policies and strategies to support firms’ GTI.