How does reverse mixed reform affect green innovation of private enterprises?

Based on the panel data of A-share listed private enterprises in China, this paper empirically examines the impact and mechanism of reverse mixed reform on green innovation of private enterprises. The results show that reverse mixed reform significantly enhances the green innovation capability of private enterprises, with a particularly pronounced effect on green utility model patents. This reform influences green innovation through the mediation effects of corporate governance, internal resource allocation, and signal mechanisms. Moreover, the signal effect and its chain mediation are positively moderated by Corporate Social Responsibility (CSR). The impact of reverse mixed reform on green innovation varies according to the degree of market openness, level of social supervision, industry type, geographical region, and the extent of reform implementation. However, no significant heterogeneity is observed with changes in the management's equity holdings. In addition to boosting green innovation, reverse mixed reform significantly improves firms' financial performance and stock returns, achieving a win-win outcome for environmental sustainability and corporate profitability.