Green Finance, Economic Policy Uncertainty, and Corporate ESG Performance

Chuanhao Liu, Peng Cui (), Hongxia Zhao, Zhanzhen Zhang, Yanshuo Zhu and Huijiao Liu
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Chuanhao Liu: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Peng Cui: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Hongxia Zhao: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Zhanzhen Zhang: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Yanshuo Zhu: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Huijiao Liu: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China

Sustainability, 2024, vol. 16, issue 22, 1-21

Abstract: Given the increasing prevalence of global warming and the frequent occurrence of extreme weather events and other challenges, countries are increasingly recognizing the importance of green and sustainable development. This paper uses the multi-period double difference and PSM-DID method to test the impact of green finance policies on the ESG performance of Chinese listed companies. Research has shown that implementing pilot zone policies can improve corporate ESG performance, especially for enterprises with low business reputations, fierce industry competition, severe information asymmetry, and state-owned attributes. The GFPZ policy drives companies to improve their ESG performance through two paths: promoting environmental innovation and strengthening restrictions on corporate financing. In addition, the increase in economic policy uncertainty hinders the positive impact of GFPZ policies on improving corporate ESG performance. This study enriches the existing micro-research on green finance policies from the perspective of enterprises. It provides empirical evidence and research insights to support the further improvement of pilot zone policies, the promotion of green sustainable development, and the improvement of corporate ESG performance.

Keywords: green finance policy; economic policy uncertainty; multi-period DID; corporate ESG performance; PSM-DID (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 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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