Does green investment mitigate corporate financial risk?

Meng Huang, Wanying Guo, Du Peng, Zeru Chen and Mingwei Gao

Finance Research Letters, 2024, vol. 67, issue PA

Abstract: This paper analyzes the impact of green investment on corporate financial risk using a sample of listed companies from China's Shanghai and Shenzhen A-share markets from 2007 to 2022. Through regression model analysis, the findings indicate a negative correlation between green investment and corporate financial risk, suggesting that green investment mitigates corporate financial risk. The mitigating effect of green investment on corporate financial risk is more pronounced in state-owned enterprises. Green investment primarily alleviates financial risk by attracting institutional investors, providing new directions and pathways for enterprises seeking green development.

Keywords: Green Finance; Green Investment; Corporate Financial Risk (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008638

DOI: 10.1016/j.frl.2024.105833

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