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The impact of green finance on enterprise investment and financing

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  • Zhang, Ge
  • Guo, Bingnan
  • Lin, Ji

Abstract

Green finance can provide impetus to fight the battle against pollution and realize the green transformation of the economy, and promote the implementation of the carbon peaking and carbon neutrality goals. To further explore the impact of green finance on enterprise investment and financing, this article focuses on the demand side of green finance, selecting non-financial A-share listed companies in China from 2010 to 2020 as the research objects and employing a fixed-effects model for analysis. The study indicates that the development of green finance helps expand the scale of enterprise investment and financing. To investigate whether this impact varies among different entities, we conduct a heterogeneity analysis. And reveals that the development of green finance significantly enlarges the investment scale of non-state-owned enterprises, and the financing scale of state-owned enterprises in terms of ownership heterogeneity. Regional heterogeneity analysis finds the development of green finance contributes to the expansion of investment scale for enterprises in the western region, and the financing scale in the eastern region.

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  • Zhang, Ge & Guo, Bingnan & Lin, Ji, 2023. "The impact of green finance on enterprise investment and financing," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009509
    DOI: 10.1016/j.frl.2023.104578
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    2. Qiang Wang & Tingting Sun & Rongrong Li, 2025. "Does Artificial Intelligence (AI) enhance green economy efficiency? The role of green finance, trade openness, and R&D investment," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-22, December.
    3. Fan, Lin & Peng, Binbin & Lin, Zhongguo & Zou, Hongyang & Du, Huibin, 2024. "The effects of green finance on pollution and carbon reduction: Evidence from China’s industrial firms," International Review of Economics & Finance, Elsevier, vol. 95(C).
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    5. Chen, Di & Hu, Haiqing & Wang, Ning & Chang, Chun-Ping, 2024. "The impact of green finance on transformation to green energy: Evidence from industrial enterprises in China," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    6. Zhao, Jing, 2024. "Impact of green finance on low-carbon transformation: Spatial spillover effects in China," The North American Journal of Economics and Finance, Elsevier, vol. 74(C).

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