<p>With the proliferation of big data and advanced analytical methodologies, understanding the complex dynamics influencing corporate behavior has become increasingly feasible. In the era of information-intensive management, this study leverages data-driven approaches to explore the role of institutional investor distraction in promoting corporate green innovation—a key driver for sustainable economic growth in China. Utilizing a comprehensive dataset of A-listed Chinese firms from 2013 to 2022, we apply a double fixed-effects model and data mining techniques to analyze how distractions among institutional investors impact both substantive and strategic green innovation. Our findings reveal that investor distraction serves as a catalyst for green innovation, particularly enhancing substantive innovations. This relationship is mediated by the exit propensity enhancement and negative media coverage, while redundant resources act as a moderating factor. Furthermore, the influence is more pronounced in non-resource-based cities, highly competitive markets, non-state-owned enterprises, and firms with lower ESG ratings. By integrating data analysis with management science, this study provides actionable insights for policymakers and corporations, contributing to the interdisciplinary discourse on sustainable development and offering a balanced perspective between theoretical rigor and practical application.</p>