The Green Finance Reform Pilot Zone Policy and Corporate Sustainable Development Performance: A Quasi-Natural Experiment from China

Shunping Teng and Haslindar Ibrahim ()
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Shunping Teng: School of Management, Universiti Sains Malaysia, Minden Penang 11800, Malaysia
Haslindar Ibrahim: School of Management, Universiti Sains Malaysia, Minden Penang 11800, Malaysia

Sustainability, 2025, vol. 17, issue 15, 1-19

Abstract: This study investigates the effect of the Green Finance Reform Pilot Zone Policy (GFRPZP) on corporate sustainable development performance (SDP) using a multi-period difference-in-differences (DIDs) regression model. This model incorporates control variables, reflecting firm-level characteristics and regional economic conditions. The results show that GFRPZP significantly enhances corporate SDP, with stronger effects observed among non-state-owned enterprises (Non-SOEs), companies situated in eastern regions, those in non-heavily polluting industries, and high-tech companies. Mediation analysis indicates that the policy enhances sustainable development through four main channels: improving the quality and quantity of green innovation, easing financing constraints, and increasing analyst attention. Moderation analysis further demonstrates that digital transformation and internal control strengthen the policy’s effect.

Keywords: GFRPZP; SDP; multi-period DIDs method; mediating effect; moderating effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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