Promoting corporate social responsibility through green finance legislation

Meng Zhao, Yuan Feng and Shuai Niu

Research in International Business and Finance, 2025, vol. 75, issue C

Abstract: Green finance offers a pivotal mechanism to support Corporate Social Responsibility (CSR) by aligning financial systems with environmental sustainability goals. This study investigates the role of green finance in promoting CSR among high-polluting companies in China by utilizing a quasi-natural experiment. Our findings reveal green finance significantly improves CSR performance. Firms with higher financial vulnerability are more likely to undertake CSR activities to secure green financing; firms under more intensive media pressure receive higher benefits from green financing on CSR through enhanced accountability and disclosure. These findings suggest that policymakers tighten financing regulations and strengthen media oversight to encourage transparency and socially responsible business practices.

Keywords: CSR; Green finance; Innovation pilot zones; Environmental accountability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000340

DOI: 10.1016/j.ribaf.2025.102778

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