Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China
In the post-epidemic era, green finance plays a more significant role in supporting the “green recovery” of the economy, so it is necessary to evaluate the implementation effect of previous green financial policies. In 2017, the green finance reform and innovation pilot zone set up in five provinces...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2021-11-01
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| Series: | Frontiers in Public Health |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fpubh.2021.794195/full |
| _version_ | 1818837013251489792 |
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| author | Jun Hu Juncheng Li Xiangyu Li Yueyue Liu Wenwei Wang Liansheng Zheng |
| author_facet | Jun Hu Juncheng Li Xiangyu Li Yueyue Liu Wenwei Wang Liansheng Zheng |
| author_sort | Jun Hu |
| collection | DOAJ |
| description | In the post-epidemic era, green finance plays a more significant role in supporting the “green recovery” of the economy, so it is necessary to evaluate the implementation effect of previous green financial policies. In 2017, the green finance reform and innovation pilot zone set up in five provinces and autonomous regions made an exploration in the development of green finance. From the perspective of micro-enterprises, can this policy play a beneficial policy effect in the long run? Based on the quasi-natural experiment of green finance pilot, using the data of A-share listed companies, this paper empirically tests the impact of pilot policies on the long-term value of green enterprises in pilot areas. It is found that, compared with non-pilot zones, the green finance pilot enables a significant increase in the Tobin Q-measured value of green enterprises in the pilot zones. Heterogeneity analysis shows that green finance pilot has a more significant impact on non-state-owned enterprises, enterprises in traditional industries, large enterprises, and enterprises in the eastern region of China. Green finance pilot zone can achieve better policy effects in areas with stronger environmental impact regulation and higher financial development levels. The mechanism test shows that the green finance pilot affects the long-term value of green enterprises through the capital market effect improving the stock trading activity of enterprises and through the real effect improving the operational efficiency and profitability of enterprises. From the perspective of micro-enterprises, this paper enriches the research on the development effect of green finance and provides theoretical support for the effect evaluation of green finance pilot policies. |
| first_indexed | 2024-12-19T03:15:45Z |
| format | Article |
| id | doaj.art-5e2ad43e6d3249dda5a4f3d01cf1c044 |
| institution | Directory Open Access Journal |
| issn | 2296-2565 |
| language | English |
| last_indexed | 2024-12-19T03:15:45Z |
| publishDate | 2021-11-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Public Health |
| spelling | doaj.art-5e2ad43e6d3249dda5a4f3d01cf1c0442022-12-21T20:37:53ZengFrontiers Media S.A.Frontiers in Public Health2296-25652021-11-01910.3389/fpubh.2021.794195794195Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in ChinaJun Hu0Juncheng Li1Xiangyu Li2Yueyue Liu3Wenwei Wang4Liansheng Zheng5School of Management, Hainan University, Haikou, ChinaInstitute of Finance & Banking, Chinese Academy of Social Sciences, Beijing, ChinaThe Graduate School of College of Arts and Sciences, Georgetown University, Washington, DC, United StatesSchool of Literature, University of Chinese Academy of Social Sciences, Beijing, ChinaSchool of Finance, Central University of Finance and Economics, Beijing, ChinaInstitute of Finance & Banking, Chinese Academy of Social Sciences, Beijing, ChinaIn the post-epidemic era, green finance plays a more significant role in supporting the “green recovery” of the economy, so it is necessary to evaluate the implementation effect of previous green financial policies. In 2017, the green finance reform and innovation pilot zone set up in five provinces and autonomous regions made an exploration in the development of green finance. From the perspective of micro-enterprises, can this policy play a beneficial policy effect in the long run? Based on the quasi-natural experiment of green finance pilot, using the data of A-share listed companies, this paper empirically tests the impact of pilot policies on the long-term value of green enterprises in pilot areas. It is found that, compared with non-pilot zones, the green finance pilot enables a significant increase in the Tobin Q-measured value of green enterprises in the pilot zones. Heterogeneity analysis shows that green finance pilot has a more significant impact on non-state-owned enterprises, enterprises in traditional industries, large enterprises, and enterprises in the eastern region of China. Green finance pilot zone can achieve better policy effects in areas with stronger environmental impact regulation and higher financial development levels. The mechanism test shows that the green finance pilot affects the long-term value of green enterprises through the capital market effect improving the stock trading activity of enterprises and through the real effect improving the operational efficiency and profitability of enterprises. From the perspective of micro-enterprises, this paper enriches the research on the development effect of green finance and provides theoretical support for the effect evaluation of green finance pilot policies.https://www.frontiersin.org/articles/10.3389/fpubh.2021.794195/fullCOVID-19green recoverygreen financegreen enterprisepilot zoneenterprise value |
| spellingShingle | Jun Hu Juncheng Li Xiangyu Li Yueyue Liu Wenwei Wang Liansheng Zheng Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China Frontiers in Public Health COVID-19 green recovery green finance green enterprise pilot zone enterprise value |
| title | Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China |
| title_full | Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China |
| title_fullStr | Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China |
| title_full_unstemmed | Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China |
| title_short | Will Green Finance Contribute to a Green Recovery? Evidence From Green Financial Pilot Zone in China |
| title_sort | will green finance contribute to a green recovery evidence from green financial pilot zone in china |
| topic | COVID-19 green recovery green finance green enterprise pilot zone enterprise value |
| url | https://www.frontiersin.org/articles/10.3389/fpubh.2021.794195/full |
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