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Can green finance supports improve environmental firm performance? Evidence from listed environmental firms in China

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  • Huang, Siyu
  • Luan, Zhongwei

Abstract

This study analyzes how green finance supports affect environmental protection firms’ economic and social performance. Furthermore, we explore how financing constraints and technological advancements mediate such relationship among the Chinese A-share market from 2014 to 2021. Findings reveal that supports in sustainable financial practices positively affect the social performance of firms, whereas an inverse U-shaped relationship exists between green finance supports and economic performance. Moreover, green finance support initiatives improve firms’ social and economic performance by lowering financing barriers and fostering innovation.

Suggested Citation

  • Huang, Siyu & Luan, Zhongwei, 2024. "Can green finance supports improve environmental firm performance? Evidence from listed environmental firms in China," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013503
    DOI: 10.1016/j.frl.2024.106321
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    More about this item

    Keywords

    Green finance; Economic performance; Social performance;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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