Green innovation (GI) can increase the value of companies. A study looked at over 3000 Chinese companies from 2007 to 2018 and found that for every 1% increase in green patents, a company's value went up by 0.023. This positive effect can last for several years. It is more beneficial for young, non-state-owned companies in industries with heavy pollution and low technology. The increase in profits is a big reason why green innovation boosts company value.