Low-carbon pilot cities and financialization of listed companies: Inhibitory effects and policy analysis

This study examined the low-carbon pilot city policy as a critical policy intervention. We explored its potential impact on the financialization of China-listed companies. The findings indicate that listed companies exhibited a significant downward trend in the proportion of financial assets held among the low-carbon pilot city projects. Policy implementation has intensified the financing constraints of enterprises, effectively curbing the degree of corporate financialization. The effect of capital returning to the actual industry under policy guidance was more prominent for companies with a high proportion of institutional investors, underscoring the positive role of policy in adjusting enterprises’ capital structure while promoting the development of the real economy.