Keywords
Corporate Green Behavior
Green Innovation
Sustainable Finance
Literature Review
ESG Investment
How to Cite
Abstract
In the context of global sustainable development and the transition toward a low-carbon economy, patient capital has emerged as a critical financial instrument for fostering long-term, environmentally responsible corporate behavior. Patient capital, characterized by its extended investment horizons, higher tolerance for uncertainty, and commitment to value creation beyond immediate financial returns, provides the financial stability necessary for enterprises to undertake green innovation and adopt sustainable practices. This paper presents a comprehensive literature review that systematically examines the conceptual evolution, measurement methodologies, and economic effects of patient capital, with particular emphasis on its relationship with corporate green behavior. The review synthesizes findings from both English-language and Chinese-language scholarship, tracing the theoretical underpinnings of patient capital from its origins in development economics and venture capital to its contemporary applications in environmental finance. The analysis reveals that patient capital facilitates corporate green behavior through multiple channels, including alleviating financing constraints for green innovation, enabling long-term environmental investments, and mitigating managerial myopia. Furthermore, the paper identifies key gaps in the existing literature, particularly regarding the mechanisms through which patient capital influences corporate environmental decision-making, and proposes promising directions for future research. This review contributes to the growing body of knowledge at the intersection of sustainable finance and corporate environmental responsibility, offering theoretical and practical implications for policymakers, investors, and corporate managers seeking to promote green economic transformation.
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