How Fintech mitigates credit mismatches to promote green innovation: Evidence from Chinese listed enterprises

The intersection of financial technology (fintech) and sustainable development has gained increasing attention, particularly regarding how fintech can support corporate green innovation. However, the role of fintech in mitigating credit mismatches—a key barrier for enterprises pursuing green initiatives—remains underexplored, especially within the context of Chinese listed enterprises. Addressing this gap, our study utilizes a panel dataset from 2010 to 2021 to investigate the influence of fintech on green innovation and the mediating role of credit mismatches. Through a series of baseline regressions, endogeneity tests, and heterogeneity analyses, we find a significant positive relationship between fintech adoption and green innovation, with credit mismatches serving as a crucial mediator. Moreover, the effects of fintech are most pronounced in eastern China and in industries with lower pollution levels. These findings provide new insights into how fintech can bridge financing gaps, foster green innovation, and promote the transition to a more sustainable economy. Our results carry important implications for policymakers aiming to leverage fintech as a tool for both financial inclusion and environmental sustainability.