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Regional carbon efficiency and corporate risk-taking

Author

Listed:
  • Xiaohui Chen

    (Sichuan University Jinjiang College)

  • Wen Chen

    (Nanjing Agricultural University)

  • Xiaoxiang Wang

    (Southwestern University of Finance and Economics)

Abstract

Based on Chinese city data and a sample of A-share listed companies from 2008–2019, we empirically confirm that improving regional carbon efficiency is conducive to enhancing corporate risk-taking. The mechanism tests show that improving regional carbon efficiency can increase corporate risk-taking by reducing corporate carbon risk. Reducing carbon risk leads to an increase in debt financing, a reduction in agency costs between shareholders and managers, and an incentive for R&D investments.

Suggested Citation

  • Xiaohui Chen & Wen Chen & Xiaoxiang Wang, 2024. "Regional carbon efficiency and corporate risk-taking," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-30, June.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:3:d:10.1007_s10644-024-09695-w
    DOI: 10.1007/s10644-024-09695-w
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    References listed on IDEAS

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