Green finance policy has emerged as a powerful driver for sustainable development worldwide, which has arisen at the top of the political agenda. Drawing on resource allocation theory, this study empirically investigates whether and how green finance policy affects corporate environmental responsibility in achieving sustainable development goals on a micro level. Taking China’s green finance reform and innovation (GFRI) pilot policy as a quasi-natural experiment, this paper employs the difference-in-differences model to investigate the impact of green finance policy on corporate environmental responsibility. The evidence shows that the GFRI policy significantly promotes corporate environmental responsibility. The results hold robust after a series of checks such as parallel trend examination, placebo test, exclusion of other policies, and alternative variable measurement. Moreover, this study explores the potential mechanism channels from the perspective of resource allocation theory. Specifically, green finance policy ultimately accelerates corporate environmental responsibility through financing capacity and environmental protection supervision. The heterogeneity analysis shows that the positive impact of the GFRI policy on corporate environmental responsibility is more pronounced for companies in areas with superior green development, strong law enforcement, and higher levels of pollution. The above findings indicate that the formal institution of government-led green financial policy can positively affect corporate environmental responsibility, with regional green development and law enforcement factors enhancing the effectiveness of these policies. Furthermore, the level of local pollution further intensifies the corporate sensibility to such policy effects. Overall, our study sheds light on the significant role of green financial policy in fostering a sustainable economy, helping reconcile the mixed evidence on the financial function of green finance policy on the firm level.

Purpose: New quality productive forces (NQPF) are critical for high-quality economic development. As digital mergers and acquisitions (M&As) gain prominence in corporate digital transformation, understanding their impact on NQPF is essential. This study explores whether digital M&As enhance NQPF in firms and identifies key mechanisms that drive this effect. Design/methodology/approach: This study investigates the impact of corporate digital M&As on NQPF using a multi-period difference-in-difference (DID) methodology. Analyzing a sample of Chinese listed firms from 2011 to 2021, the study explores how digital M&As contribute to NQPF, identifying firm innovation and data assets as key mechanisms. It also examines how external factors, such as industrial structure, urban human capital and economic policy uncertainty, moderate the effect of digital M&As on NQPF. Findings: The study reveals three key findings: (1) Digital M&As significantly enhance corporate NQPF; (2) innovation and data assets serve as key mechanisms through which digital M&As drive NQPF and (3) external factors, including industrial structure, urban human capital and economic policy uncertainty, amplify the positive effects of digital M&As on NQPF. Practical implications: Firms should leverage digital M&As as a strategic tool for improving NQPF, focusing on innovation and data assets. Policymakers can support this transformation by fostering an environment that enhances the positive impact of digital M&As on economic development. Originality/value: This paper introduces a novel NQPF index, offering a comprehensive measurement of the concept. It provides new insights into how digital M&As affect NQPF, filling a gap in the literature on digital transformation and offering actionable recommendations for firms and policymakers.