Abstract:    Enhancing total factor productivity (TFP) is a fundamental driver of high-quality and innovation-driven development of enterprises. In the context of China′s "carbon peaking and carbon neutrality" strategy, green finance has emerged as a pivotal financial innovation. However, its impact on firms′ TFP and the underlying transmission mechanisms remain underexplored. Drawing on the panel data of non-financial A-share listed companies in Shanghai and Shenzhen from 2009 to 2020, this study employed the fixed effects and mediation models to empirically examine the effects of green finance on corporate TFP. The results showed that: (1) green finance significantly improves firm-level TFP; (2) information transparency and green innovation serve as effective mediators in this relationship, whereas the mediating effect of financing constraints is heterogeneous across firms; and (3) the productivity-enhancing effects of green finance are more prominent among state-owned and heavily polluting enterprises, indicating differentiated policy impacts. This study will contribute to the literature on the real economic consequences of green finance and the determinants of productivity, and offer theoretical and policy implications for promoting synergy between green transformation and sustainable economic growth.

Key words: green finance, total factor productivity, highquality development, heterogeneity