<p>Green innovation has received increased attention recently due to its contribution to resource conservation and environmental preservation. This study examined the financial impact of green innovation by empirically investigating the relationship between green innovation and stock liquidity of global energy firms. We found that green innovation is positively associated with stock liquidity of these firms. The findings were robust to an alternative proxy of stock liquidity, modified model specification and endogeneity control. Moreover, this positive relationship was more pronounced for firms with greater visibility and financially healthier firms. Additionally, our subsample analysis showed that the positive relationship between green innovation and stock liquidity only holds for firms operating in countries with lower levels of institutional quality. The findings of this study offer important implications for energy firms, policymakers, and investors regarding the adoption of green innovation to improve stock liquidity of firms in the capital market.</p>