How Does Patient Capital Promote Corporate Green Innovation?

This study examines whether patient capital promotes corporate green innovation in emerging markets. Using Chinese A-share listed firms from 2009 to 2024 and a PPML-HDFE model, we find that patient capital significantly enhances substantive green innovation, while its effect on strategic green patenting is weaker. Mechanism tests show that patient capital reduces managerial myopia, eases financing constraints, and improves ESG performance. Its effect is stronger with digital transformation and better business environments, and translates into higher firm value and lower carbon intensity.