RESEARCH ON THE IMPACT MECHANISM OF GREEN INNOVATION ON ENTERPRISE PERFORMANCE

The intensification of global environmental problems has prompted the international community to take action to protect ecosystems. China has demonstrated its commitment to environmental governance through strategies such as ecological civilization construction, carbon peak, and carbon neutrality. As a basic unit of the economy, enterprises bear important responsibilities in the green transformation. After looking at what other research has said, this study builds a research model to look into how green innovation affects corporate performance, how corporate environmental governance and reputation affect each other, and how board governance and equity nature affect each other. We conducted an empirical test using Chinese Shanghai and Shenzhen-listed companies from 2012 to 2022 as a sample. Green technology innovation and green management innovation both have a big positive effect on corporate performance; (2) the ability and reputation of the company to manage the environment and its image play a part; (3) the level of board governance has a positive moderating effect on some paths; and (4) green innovation has a bigger effect on the performance of businesses that are not owned by the government. This study builds a model of how green innovation affects the performance of businesses. It gives us a new way to look at the internal logic and fills in a gap in micro-mechanism research