Climate policy and corporate green transformation: Empirical evidence from carbon emission trading

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE Research in International Business and Finance Pub Date : 2024-11-28 DOI:10.1016/j.ribaf.2024.102675

Lin Liu , Liqun Liu , Kai Liu , Ana Isabel Jiménez-Zarco

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Abstract

The implementation of climate policies in the financial sector is a global consensus among countries committed to sustainable development. Therefore, the impact of carbon trading policy (CTP) on firms’ green transformation (GT) is examined by manually compiling a directory of emission control enterprises in China’s carbon market from 2008 to 2022, using a difference-in-differences model. This topic must be urgently explored through theoretical and empirical studies. This study found that CTP can promote corporate green transformation; however has no industry and regional spillover effects. Mechanism analyses indicate that CTP can promote a firm’s green transformation by enhancing green innovation and environmental, social, and governance (ESG) performance. Heterogeneity analysis reveals that the effect of CTP on GT is effective when firms have higher “greenwash” scores, lower financialization, weaker product market competition, and higher levels of environmental regulation. This study reveals the microeconomic effects of CTP, and the findings provide empirical evidence that China can realize Porter’s hypothesis.

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance