Green financial regulation and corporate strategic ESG behavior: Evidence from China

Xuanxuan Jin, Hanying Qi and Xin Huang

Finance Research Letters, 2024, vol. 65, issue C

Abstract: This article examines the impact of the Green Financial Regulatory Policy on corporate strategic ESG behavior against the backdrop of the 2017 policy integration of “green finance” into the Macro-Prudential Assessment by the central bank. The research identifies that GFRP may shift corporate focus towards the disclosure of ESG performance while neglecting the actual practices of ESG engagement, potentially inducing firms to engage in ESG greenwashing. It is further posited that corporate green perception and executives' environmental backgrounds serve as primary mechanisms in this dynamic. Additionally, the policy efficacy of GFRP on strategic ESG behavior exhibits heterogeneity.

Keywords: Green financial regulation; Practice ESG; Disclosure ESG; ESG greenwashing; Policy shock (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324006111

DOI: 10.1016/j.frl.2024.105581

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