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Government certified environmental labels and trade credit: Evidence from green factories

Author

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  • Li, Panni
  • Yao, Shouyu
  • Fan, Lin
  • Yin, Shihao
  • Du, Huibin

Abstract

Using novel data from a manually collected green factory list, our results show government-certified labels significantly enhance trade credits by reducing information asymmetry. Heterogeneity analysis reveals stronger effects in highly monopolized, low-reputation markets, where green certification provides a competitive advantage.

Suggested Citation

  • Li, Panni & Yao, Shouyu & Fan, Lin & Yin, Shihao & Du, Huibin, 2024. "Government certified environmental labels and trade credit: Evidence from green factories," Economics Letters, Elsevier, vol. 244(C).
  • Handle: RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524004920
    DOI: 10.1016/j.econlet.2024.112008
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    References listed on IDEAS

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    Cited by:

    1. Weining Wang & Qi Zhang & Jia Hao, 2024. "How Does Green Factory Certification Affect Corporate Sustainability Performance: Evidence from China," Sustainability, MDPI, vol. 17(1), pages 1-23, December.

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    More about this item

    Keywords

    Government certification; Green factory; Trade credit; Information asymmetry;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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