 Foreign bank entry and corporate emissions: Evidence from staggered deregulations in ChinaWilliam Mbanyele, Hongyun Huang, Ying Liu and Xinwei Qu Journal of Multinational Financial Management, 2025, vol. 79, issue C Abstract: In this study, we estimate the impact of staggered foreign bank entry deregulation in China on corporate emissions. We find that firms significantly reduce their emissions following the entry of foreign banks. This impact is more concentrated in financially constrained and bank dependent firms, as well as firms with severe ex-ante agency costs. Firms exposed to high environmental litigation risk, facing less local economic pressure to meet growth targets and located in areas with lower ex-ante banking competition also show a significant reduction in emissions post-foreign bank entry deregulation. Moreover, our investigation shows that foreign bank entry contributes to corporate emissions reduction through the adoption of pollution abatement equipment and green technologies. Overall, we uncover new evidence on the impact of foreign bank entry on social welfare outcomes, thereby expanding our understanding of the role of financial market openness in moving toward a low-carbon economy. Keywords: Foreign Bank Entry; Deregulation; Corporate Emissions; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:79:y:2025:i:c:s1042444x25000234 DOI: 10.1016/j.mulfin.2025.100919 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.