 Will the China's carbon emissions market increase the risk-taking of its enterprises?Boqiang Lin () and Nan Wu International Review of Economics & Finance, 2022, vol. 77, issue C, 413-434 Abstract: This paper investigates the effect of carbon emissions trading in China on the corporate risk-taking level of enterprises involved. The empirical results show that: (a) after the building and running of the carbon emissions trading market, the level of corporate risk-taking of the involved enterprises will perform significant increase; (b) however, there is no evidence currently to show that the increasing corporate risk-taking level after the building of China's carbon emissions trading market results from improving the financing environment of the involved enterprises; (c) non-state-owned enterprises are more willing to take risks than state-owned enterprises (SOEs) when they are simultaneously involved in the carbon market; (d) younger and smaller enterprises are more likely to cope with the uncertainties of this cap-and-trade trading market positively. Our results are robust to a wide series of checks, and hold significant policy implications for enterprises to better cope with the in-depth development of the carbon market. Keywords: China's carbon emissions trading; Corporate risk-taking; Difference-in-differences (DID) (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:reveco:v:77:y:2022:i:c:p:413-434 DOI: 10.1016/j.iref.2021.10.005 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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