Dataset for "Corporate Green Innovation and Financial Performance Under Environmental Regulation: Evidence from Moderated Mediation Approach"

This study examines the impact of environmental regulation stringency (ERS) on firms' financial performance, along with the mechanisms driving these effects, within a command-and-control regulatory framework. Using a sample of 4,874 listed firms in China from 2016 to 2020, we document a positive relationship between ERS and firm financial performance. Moreover, we find that the positive effect of ERS on financial performance can be mediated by a reduction in green innovation activities, which are typically associated with high costs that firms may struggle to afford under greater regulatory pressures for pollution control. Further evidence suggests that green bond issuance can significantly mitigate the inhibitory effect of ERS on green innovation, whereas environmental subsidy is ineffective.