Moderating effect of corporate financialization on the impact of climate policy on corporate green innovation: Evidence from China

With intensifying global climate change,humanity is confronted with unparalleled environmental challenges and risks.This study employs the staggered difference-in-difference model to examine the relationship be‐tween climate policy and green innovation in the corporate financialization context.Using Chinese-listed com‐pany data from 2008 to 2020,our analysis reveals a favorable correlation between China’s carbon emission trading policy (CCTP) and advancements in green innovation.Furthermore,we find that the level of corporate financialization moderates this correlation,diminishing the driving effect of CCTP on green innovation.Addi‐tionally,results of heterogeneity analysis show that this moderating consequence is more evident in non-stateowned and low-digitization enterprises compared with state-owned and high-digitization ones.Our findings contribute to the existing literature by clarifying the interaction between CCTP,green innovation,and corpo‐rate financialization.Our research provides valuable insights for policymakers and stakeholders seeking to strengthen climate policies and encourages green innovation in different types of businesses.