IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v63y2024ics1544612324003878.html
   My bibliography  Save this article

Environmental regulation and corporate financial risk: The role of credit guarantees

Author

Listed:
  • Wang, Junfeng
  • Wang, Huimin

Abstract

This research explores the relationship between environmental regulation and corporate financial risk in the face of increasing public environmental concerns worldwide. Taking advantage of public-listed firms in Shanghai and Shenzhen stock markets from 2010 to 2022, this study finds strong evidence that environmental regulations inversely affect corporate financial risk after controlling for various firm-specific variables. The findings are robust to a series of robustness tests. In addition, this study further demonstrates that credit guarantees positively moderate the relationship between environmental regulation and firms’ financial risk. Overall, our study contributes to the fast-growing literature on the impact of environmental-related issues on firm outcomes and generates profound policy implications.

Suggested Citation

  • Wang, Junfeng & Wang, Huimin, 2024. "Environmental regulation and corporate financial risk: The role of credit guarantees," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003878
    DOI: 10.1016/j.frl.2024.105357
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324003878
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105357?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003878. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.