Can green finance reduce corporate carbon risk?

Tingyong Zhong, Fuqi Ma, Fangcheng Sun and Jiangna Li

Finance Research Letters, 2024, vol. 63, issue C

Abstract: This study analyzes data from Chinese A-share market-listed manufacturing companies between 2009 and 2021. Our results underscore the effectiveness of green finance in mitigating corporate carbon risk, supported by robustness tests. Risk reduction is particularly pronounced for firms under stringent environmental regulations and those receiving greater media attention. Our findings indicate that green finance alleviates financial constraints, reduces carbon risk, and boosts firm value. This study deepens the understanding of the interplay between green finance and corporate carbon risk, offering valuable insights for companies aiming to reduce emissions, sustain economic performance, and manage carbon-related risks effectively.

Keywords: Green finance; Carbon risk; Financing constraints; Enterprise value (search for similar items in EconPapers)
JEL-codes: G32 L60 P18 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324002642

DOI: 10.1016/j.frl.2024.105234

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