Study on Institutional Investors' Impact on Enterprise Green Innovation--- Evidence from Chinese Listed Company

Over the past decade, Chinese institutional investors have grown significantly in both size and volume. However, their role in the capital market remains poorly defined. Therefore, a more in-depth examination of the effect of institutional investors on the performance and development of enterprises in the financial market is essential, particularly regarding enterprises' green innovation capabilities, holds substantial practical significance. To detect the influence brought by institutional investors on the capability of enterprises to innovate green, in the study, from 2010 to 2023, the statistics of Chinese listed companies are gathered and analyzed, and the regression effect model is used to empirically analyze these data, the results show that when more shares are held by institutional investors, the corresponding enterprises have stronger green innovation capability, this paper indicated that institutional investors are expected to contribute to enterprises' green innovation capability, and it also examines the mediating effect of top management incentives on the previous two research objectives. The outcome indicates that top management incentives have a significant and positive mediating effect on this relationship; that is, green innovation capabilities of enterprises probably can be boosted by institutional investors through incentives for top management.