Pub Date : 2025-10-27DOI: 10.1016/j.gfj.2025.101179
Hao Dong , Chengcheng Li , Xiaoqiong Wang
This paper examines the relationship between top executives’ social ties with the media and firm greenwashing activities. We find that firms with media connections are more likely to engage in greenwashing practices. Although these ties enhance environmental, social, and governance (ESG) disclosures, they do not significantly improve actual ESG performance. Media connections improve a firm’s ESG disclosure by enhancing its ability to package ESG reports and disseminate “soft” and favorable information about the firm. The effect of media connections on greenwashing is more pronounced among firms in polluting industries, those subject to mandatory ESG disclosure requirements, and firms attracting high investor attention. Our findings support the strategic media management hypothesis.
{"title":"Friendly press, fading greens: The effect of media connection on firm greenwashing","authors":"Hao Dong , Chengcheng Li , Xiaoqiong Wang","doi":"10.1016/j.gfj.2025.101179","DOIUrl":"10.1016/j.gfj.2025.101179","url":null,"abstract":"<div><div>This paper examines the relationship between top executives’ social ties with the media and firm greenwashing activities. We find that firms with media connections are more likely to engage in greenwashing practices. Although these ties enhance environmental, social, and governance (ESG) disclosures, they do not significantly improve actual ESG performance. Media connections improve a firm’s ESG disclosure by enhancing its ability to package ESG reports and disseminate “soft” and favorable information about the firm. The effect of media connections on greenwashing is more pronounced among firms in polluting industries, those subject to mandatory ESG disclosure requirements, and firms attracting high investor attention. Our findings support the strategic media management hypothesis.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101179"},"PeriodicalIF":5.5,"publicationDate":"2025-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417011","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-27DOI: 10.1016/j.gfj.2025.101206
Michelle Xuan Mi, Rumi Masih
This paper examines the resilience of private equity (PE) and venture capital (VC) returns to economic and market shocks, exploring their role as alternative asset classes within diversified institutional portfolios. Despite the increasing allocation to these illiquid and untransparent assets, little is understood about their shock resilience, econometric exogeneity, and diversification properties when combined with liquid assets such as equities, bonds, and commodities. We use a Vector Autoregression (VAR) framework to analyze PE and VC performance over thirty years, assessing their reactivity and adaptability to fluctuations in traditional asset classes and macroeconomic indicators. Our findings show that while PE and VC are sensitive to immediate market changes, they demonstrate substantial long-term resilience, regaining equilibrium aftershocks. This reveals that PE/VC is an ideal asset class for diversification within institutional portfolios as a buffer against market volatility without sacrificing returns.
{"title":"How resilient are PE/VC returns to real shocks?","authors":"Michelle Xuan Mi, Rumi Masih","doi":"10.1016/j.gfj.2025.101206","DOIUrl":"10.1016/j.gfj.2025.101206","url":null,"abstract":"<div><div>This paper examines the resilience of private equity (PE) and venture capital (VC) returns to economic and market shocks, exploring their role as alternative asset classes within diversified institutional portfolios. Despite the increasing allocation to these illiquid and untransparent assets, little is understood about their shock resilience, econometric exogeneity, and diversification properties when combined with liquid assets such as equities, bonds, and commodities. We use a Vector Autoregression (VAR) framework to analyze PE and VC performance over thirty years, assessing their reactivity and adaptability to fluctuations in traditional asset classes and macroeconomic indicators. Our findings show that while PE and VC are sensitive to immediate market changes, they demonstrate substantial long-term resilience, regaining equilibrium aftershocks. This reveals that PE/VC is an ideal asset class for diversification within institutional portfolios as a buffer against market volatility without sacrificing returns.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101206"},"PeriodicalIF":5.5,"publicationDate":"2025-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145466446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-25DOI: 10.1016/j.gfj.2025.101204
Matías Braun , Santiago Truffa , Ercos Valdivieso
Using a large sample of U.S. public firms, our study introduces a measure of misconduct exposure, based on the interconnected professional experiences of board members with directors from firms previously engaged in misconduct. We document that a firm's inclination towards corporate misbehavior is positively associated with its proximity, particularly through past professional board connections, to firms with similar misconduct histories. These peer effects are more pronounced when the connection involves influential board members, when the misconduct is less detectable, and when the misconducting neighboring firms receive lenient penalties. Our findings are robust to controlling for varying enforcement levels and are not fully explained by the endogenous nature of firm-director relationships. Moreover, these professional network effects are distinct from the influences of local and industry norms, interlocking directorates, and geographic proximity, for which we also provide evidence.
{"title":"Director networks and misconduct","authors":"Matías Braun , Santiago Truffa , Ercos Valdivieso","doi":"10.1016/j.gfj.2025.101204","DOIUrl":"10.1016/j.gfj.2025.101204","url":null,"abstract":"<div><div>Using a large sample of U.S. public firms, our study introduces a measure of misconduct exposure, based on the interconnected professional experiences of board members with directors from firms previously engaged in misconduct. We document that a firm's inclination towards corporate misbehavior is positively associated with its proximity, particularly through past professional board connections, to firms with similar misconduct histories. These peer effects are more pronounced when the connection involves influential board members, when the misconduct is less detectable, and when the misconducting neighboring firms receive lenient penalties. Our findings are robust to controlling for varying enforcement levels and are not fully explained by the endogenous nature of firm-director relationships. Moreover, these professional network effects are distinct from the influences of local and industry norms, interlocking directorates, and geographic proximity, for which we also provide evidence.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101204"},"PeriodicalIF":5.5,"publicationDate":"2025-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417009","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-24DOI: 10.1016/j.gfj.2025.101207
Yehwan Lee, Seung Hun Han
This study investigates how negative environmental, social, and governance (ESG) news about peer firms affects the investment efficiency of focal firms. Analyzing a panel of U.S. public firms from 2007 to 2020, we find that such news enhances investment efficiency, primarily by reducing underinvestment. Peer controversies appear to signal the focal firm's superior quality to capital providers, easing financing constraints and enabling projects previously delayed by lack of funding. The effect is stronger in highly competitive industries. In response, firms reallocate capital toward research and development and capital expenditures while cutting back on acquisitions. We propose a novel information-based mechanism, termed the “relative quality signal,” through which peer ESG failures highlight the focal firm's stronger governance and risk management. Unlike traditional learning or contagion effects that spread information or sentiment uniformly across firms, this signaling channel highlights heterogeneous investor responses: peer crises enhance the relative reputation of unaffected firms, offering a new perspective on intraindustry information transmission. Robustness tests using dynamic panel GMM and instrumental variable estimations confirm that the results are not driven by endogeneity. Our findings suggest that negative ESG events generate positive externalities for unaffected firms by alleviating information asymmetry and improving capital allocation. The results underscore that ESG news serves as a valuable market signal for investors and regulators, enhancing overall investment efficiency across industries.
{"title":"ESG news spillover and corporate investment efficiency","authors":"Yehwan Lee, Seung Hun Han","doi":"10.1016/j.gfj.2025.101207","DOIUrl":"10.1016/j.gfj.2025.101207","url":null,"abstract":"<div><div>This study investigates how negative environmental, social, and governance (ESG) news about peer firms affects the investment efficiency of focal firms. Analyzing a panel of U.S. public firms from 2007 to 2020, we find that such news enhances investment efficiency, primarily by reducing underinvestment. Peer controversies appear to signal the focal firm's superior quality to capital providers, easing financing constraints and enabling projects previously delayed by lack of funding. The effect is stronger in highly competitive industries. In response, firms reallocate capital toward research and development and capital expenditures while cutting back on acquisitions. We propose a novel information-based mechanism, termed the “relative quality signal,” through which peer ESG failures highlight the focal firm's stronger governance and risk management. Unlike traditional learning or contagion effects that spread information or sentiment uniformly across firms, this signaling channel highlights heterogeneous investor responses: peer crises enhance the relative reputation of unaffected firms, offering a new perspective on intraindustry information transmission. Robustness tests using dynamic panel GMM and instrumental variable estimations confirm that the results are not driven by endogeneity. Our findings suggest that negative ESG events generate positive externalities for unaffected firms by alleviating information asymmetry and improving capital allocation. The results underscore that ESG news serves as a valuable market signal for investors and regulators, enhancing overall investment efficiency across industries.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101207"},"PeriodicalIF":5.5,"publicationDate":"2025-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417008","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-22DOI: 10.1016/j.gfj.2025.101202
Zhen Wang, Kai Wu
This study investigates the influence of climate change exposure on institutional ownership worldwide. Leveraging a comprehensive dataset of firm-level climate change exposure, we document a negative association between climate change exposure and in- stitutional ownership, establishing causality through an instrumental variable approach and the difference-in-differences method. Short-term-oriented institutional investors drive the negative correlation between climate change exposure and institutional ownership. This relationship is particularly pronounced in firms with weaker corporate governance structures and poor information disclosure quality and in countries with stronger environmental policies and higher climate awareness. While institutions generally reduce their holdings in climate-exposed firms, those maintaining ownership positions demonstrate increased engagement in climate risk governance. Our findings emphasize the dual role of institutional investors in responding to climate risks and shaping corporate environmental governance.
{"title":"How do institutional investors respond to climate change exposure? International evidence","authors":"Zhen Wang, Kai Wu","doi":"10.1016/j.gfj.2025.101202","DOIUrl":"10.1016/j.gfj.2025.101202","url":null,"abstract":"<div><div>This study investigates the influence of climate change exposure on institutional ownership worldwide. Leveraging a comprehensive dataset of firm-level climate change exposure, we document a negative association between climate change exposure and in- stitutional ownership, establishing causality through an instrumental variable approach and the difference-in-differences method. Short-term-oriented institutional investors drive the negative correlation between climate change exposure and institutional ownership. This relationship is particularly pronounced in firms with weaker corporate governance structures and poor information disclosure quality and in countries with stronger environmental policies and higher climate awareness. While institutions generally reduce their holdings in climate-exposed firms, those maintaining ownership positions demonstrate increased engagement in climate risk governance. Our findings emphasize the dual role of institutional investors in responding to climate risks and shaping corporate environmental governance.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101202"},"PeriodicalIF":5.5,"publicationDate":"2025-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145362530","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-17DOI: 10.1016/j.gfj.2025.101205
Anh Tuan Le , Harvey Nguyen , Cuong Nguyen
This study investigates the cross-sectional asset pricing implications of investor regret in the Chinese stock market. Using a comprehensive sample spanning January 2000 to November 2021, we find that regret is positively related to the cross-section of future equity returns. A strategy that involves longing a portfolio with the highest regret and shorting a portfolio with the lowest regret generates annualized risk-adjusted returns of 11.64 %. In addition, the regret premium is more pronounced for stocks with high arbitrage limits and information frictions. The regret anomaly persists after considering established asset pricing factors through extensive sensitivity analyses. Overall, our findings remain consistent with our hypothesis that regret-averse investors generally avoid stocks that generate high regret as these stocks have reduced overall utility compared with others. Consequently, these high regret stocks tend to deliver higher future returns in equilibrium. Our results provide valuable insights for policymakers and regulators to better understand how investors' emotional behaviors such as regret can affect stock dynamics, particularly in emerging and retail-driven markets.
{"title":"Regret to reward: Investor regret and the cross-sectional stock returns in the Chinese market","authors":"Anh Tuan Le , Harvey Nguyen , Cuong Nguyen","doi":"10.1016/j.gfj.2025.101205","DOIUrl":"10.1016/j.gfj.2025.101205","url":null,"abstract":"<div><div>This study investigates the cross-sectional asset pricing implications of investor regret in the Chinese stock market. Using a comprehensive sample spanning January 2000 to November 2021, we find that regret is positively related to the cross-section of future equity returns. A strategy that involves longing a portfolio with the highest regret and shorting a portfolio with the lowest regret generates annualized risk-adjusted returns of 11.64 %. In addition, the regret premium is more pronounced for stocks with high arbitrage limits and information frictions. The regret anomaly persists after considering established asset pricing factors through extensive sensitivity analyses. Overall, our findings remain consistent with our hypothesis that regret-averse investors generally avoid stocks that generate high regret as these stocks have reduced overall utility compared with others. Consequently, these high regret stocks tend to deliver higher future returns in equilibrium. Our results provide valuable insights for policymakers and regulators to better understand how investors' emotional behaviors such as regret can affect stock dynamics, particularly in emerging and retail-driven markets.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101205"},"PeriodicalIF":5.5,"publicationDate":"2025-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145362531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-15DOI: 10.1016/j.gfj.2025.101203
Yu Ma , Wenxia Zhao , Zijun Ding
Climate risk has emerged as a major global challenge with significant implications for the dynamics of exchange rates. By constructing a Climate Physical Risk Index based on extreme weather events across 77 countries from 1993 to 2022, this study examines whether climate shocks affect exchange rates. Fixed-effects models for panel data are employed to assess the cross-national impact of climate risk. The results indicate that climate shocks contribute to currency depreciation, with pronounced effects observed in developing countries, economies characterized by floating exchange rate regimes and those with lower levels of openness, and nations situated in the Northern Hemisphere. An analysis of the mechanisms reveals that climate risk affects exchange rates through various channels, such as deteriorating current accounts, widening fiscal deficits, hindering economic growth, and reducing total factor productivity. By introducing a cross-national risk index into the process of determining exchange rates, this study expands the intersection of climate economics and international finance. This study highlights significant policy implications for designing change rate regimes, fiscal planning, and enhancing resilience through investment strategies.
{"title":"Does climate risk influence exchange rates?","authors":"Yu Ma , Wenxia Zhao , Zijun Ding","doi":"10.1016/j.gfj.2025.101203","DOIUrl":"10.1016/j.gfj.2025.101203","url":null,"abstract":"<div><div>Climate risk has emerged as a major global challenge with significant implications for the dynamics of exchange rates. By constructing a Climate Physical Risk Index based on extreme weather events across 77 countries from 1993 to 2022, this study examines whether climate shocks affect exchange rates. Fixed-effects models for panel data are employed to assess the cross-national impact of climate risk. The results indicate that climate shocks contribute to currency depreciation, with pronounced effects observed in developing countries, economies characterized by floating exchange rate regimes and those with lower levels of openness, and nations situated in the Northern Hemisphere. An analysis of the mechanisms reveals that climate risk affects exchange rates through various channels, such as deteriorating current accounts, widening fiscal deficits, hindering economic growth, and reducing total factor productivity. By introducing a cross-national risk index into the process of determining exchange rates, this study expands the intersection of climate economics and international finance. This study highlights significant policy implications for designing change rate regimes, fiscal planning, and enhancing resilience through investment strategies.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101203"},"PeriodicalIF":5.5,"publicationDate":"2025-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325004","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-11DOI: 10.1016/j.gfj.2025.101201
Tingting Liu , Yong Du , Shuying Tan , Shuhan Zhao
This paper investigates the peer effect of shadow banking among A-share nonfinancial firms in China's Shanghai and Shenzhen markets from 2007 to 2020, focusing on common analyst networks. The results reveal a significant peer effect, whereby firms imitate the shadow banking behavior of peers connected via shared analysts. This effect reduces firm performance and heightens stock price crash risk. The underlying mechanism is driven by information transmission and competitive pressure induced by common analysts. The study also proposes countermeasures for firms, analysts, and regulators, offering a novel perspective on addressing the “hollowing out” of the real economy.
{"title":"Peer effect of nonfinancial corporate shadow banking: Evidence from common analyst networks in China","authors":"Tingting Liu , Yong Du , Shuying Tan , Shuhan Zhao","doi":"10.1016/j.gfj.2025.101201","DOIUrl":"10.1016/j.gfj.2025.101201","url":null,"abstract":"<div><div>This paper investigates the peer effect of shadow banking among A-share nonfinancial firms in China's Shanghai and Shenzhen markets from 2007 to 2020, focusing on common analyst networks. The results reveal a significant peer effect, whereby firms imitate the shadow banking behavior of peers connected via shared analysts. This effect reduces firm performance and heightens stock price crash risk. The underlying mechanism is driven by information transmission and competitive pressure induced by common analysts. The study also proposes countermeasures for firms, analysts, and regulators, offering a novel perspective on addressing the “hollowing out” of the real economy.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101201"},"PeriodicalIF":5.5,"publicationDate":"2025-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-10DOI: 10.1016/j.gfj.2025.101199
Ying Yuan , Yong Qu , Sijia Qiao
We propose a constraint-based predictor decomposition approach that exploits predictive information in commonly used predictors to improve equity premium forecasts. The approach identifies and quantifies unexpected changes as deviation tendency while bounding values to capture central tendency. Predictions from the two tendencies are then synthesized. Empirical analysis shows this approach outperforms existing methods, producing statistically and economically significant out-of-sample results. These findings validate the ability of our approach to capture both tendencies. We also extend the analysis to multivariate prediction, where results consistently confirm its superiority. Finally, robustness tests and additional analyses demonstrate that the approach delivers stable and reliable forecasting performance.
{"title":"Equity premium prediction: A constraint-based predictor decomposition approach","authors":"Ying Yuan , Yong Qu , Sijia Qiao","doi":"10.1016/j.gfj.2025.101199","DOIUrl":"10.1016/j.gfj.2025.101199","url":null,"abstract":"<div><div>We propose a constraint-based predictor decomposition approach that exploits predictive information in commonly used predictors to improve equity premium forecasts. The approach identifies and quantifies unexpected changes as deviation tendency while bounding values to capture central tendency. Predictions from the two tendencies are then synthesized. Empirical analysis shows this approach outperforms existing methods, producing statistically and economically significant out-of-sample results. These findings validate the ability of our approach to capture both tendencies. We also extend the analysis to multivariate prediction, where results consistently confirm its superiority. Finally, robustness tests and additional analyses demonstrate that the approach delivers stable and reliable forecasting performance.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101199"},"PeriodicalIF":5.5,"publicationDate":"2025-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325002","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-08DOI: 10.1016/j.gfj.2025.101200
Xiaoying Wu , Hyoung-Goo Kang , Doojin Ryu
This study examines how policy-driven green finance reform reshapes firm-banking relationships, using the implementation of China's Green Finance Pilot Zones (GFPZ) as a quasi-natural experiment. Employing loan announcement data from listed firms and a difference-in-differences approach, we measure the intensity of firm-banking relationships using repeated borrowing activity and find that the GFPZ policy significantly reduces it. The effect is more pronounced in regions with greater banking competition and financial development, and among firms that are more transparent or under stricter environmental scrutiny. By showing how sustainability-oriented policies transform financial relationships, this study provides new insights into the adaptation of firm-banking interactions under green development agendas.
{"title":"Green finance reform and reshaping firm-banking relationships: Evidence from China","authors":"Xiaoying Wu , Hyoung-Goo Kang , Doojin Ryu","doi":"10.1016/j.gfj.2025.101200","DOIUrl":"10.1016/j.gfj.2025.101200","url":null,"abstract":"<div><div>This study examines how policy-driven green finance reform reshapes firm-banking relationships, using the implementation of China's Green Finance Pilot Zones (GFPZ) as a quasi-natural experiment. Employing loan announcement data from listed firms and a difference-in-differences approach, we measure the intensity of firm-banking relationships using repeated borrowing activity and find that the GFPZ policy significantly reduces it. The effect is more pronounced in regions with greater banking competition and financial development, and among firms that are more transparent or under stricter environmental scrutiny. By showing how sustainability-oriented policies transform financial relationships, this study provides new insights into the adaptation of firm-banking interactions under green development agendas.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101200"},"PeriodicalIF":5.5,"publicationDate":"2025-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417010","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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