Abstract
This study investigates the impact of the implementation of the Environmental Protection Law on financing efficiency in industrial enterprises. The PSM-DID analysis reveals statistically significant differences in financing efficiency between the treated and control groups, indicating a substantial impact of environmental protection policies on firms' environmental practices. The analysis of fixed effects indicates a complex relationship between environmental protection law changes and financing efficiency. By combining theoretical foundations with rigorous empirical analyses, the research sheds light on the intricate interplay between environmental protection laws, financing constraints, and the optimal utilization of financial resources.
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