We study the effects of green finance reform on firms’ long-term investment using data from a Chinese green finance pilot policy introduced in 2017 and panel data on listed firms covering an eleven-year period. We find that the policy significantly increases long-term investment, with the effect accounting for approximately 17.86% of the sample mean. This positive effect mainly operates by easing firms’ financing constraints, improving firms’ financing maturity structure, and mitigating uncertainty at both the operational and market levels. Heterogeneity analyses reveal that the policy effect is more pronounced among mature firms, non-state-owned enterprises, firms with financially experienced directors, supervisors, and senior managers, and those in non-pollution-intensive industries and competitive markets.
This paper investigates the impact of corporate financial asset holdings on green innovation and explores the internal mechanisms through which financialization shapes firms’ sustainability-oriented technological strategies. Using a comprehensive panel dataset of Chinese A-share non-financial firms from 2010 to 2023, t...
Simeng Lyu, Si-Yuan Zhao, R. El Khoury et al.· Sustainability· 0 citations
After the enforcement of the green credit policy, do firms alleviate tightened external financing constraints by substituting toward alternative financing channels, or by engaging in green innovation to regain credit access? To address this question, we develop a theoretical framework that integrates heterogeneous fina...
Tong Feng, Zi-Yao Deng· Journal of Environmental Man...· 0 citations
The science and technology finance pilot policy is a key institutional effort to integrate technological innovation with financial services. Its microeconomic effects have drawn growing academic interest. Using data from Chinese A-share listed firms from 2007 to 2023, this paper treats the policy as a quasi-natural exp...
Corporate sustainable growth is intrinsically linked to governmental support. From a green development perspective, we investigate how local government environmental governance influences trade credit financing among heavily polluting firms. Our findings reveal a significant positive relationship, which is primarily...
Ming-Sheng Hu, Nan Peng· Accounting & Finance· 0 citations
Green finance has drawn considerable attention from both academia and policymakers as a key policy instrument for promoting green development and economic transformation in China. Against the backdrop of the central government’s strategic efforts to establish a green financial system and a market-oriented green technol...
