Market-based debt-to-equity conversion and corporate green innovation

Using a sample of Chinese listed data, this paper examines how market-based debt-to-equity conversions affect firms' green innovation performance to offer policy recommendations that bolster sustainable development. The empirical findings show that these conversions can enhance the level of green innovation and that risk-taking has a mediating effect. Furthermore, enterprises can alleviate their financing constraints through debt-to-equity conversions, thus regulating green innovation behaviour.