Corporate management, green finance, and sustainability

Abstract

This study aimed to assess the impact of green finance and corporate management on China’s sustainable development index from 1990 to 2020 using time series analysis. The findings reveal that a 1% increase in the green financial market corresponds to a 0.31% and 0.69% enhancement in China’s sustainable development index in the short and long-term, respectively. Similarly, a 1% improvement in the corporate governance index is associated with a 0.16% and 0.29% increase in the short- and long-term. Interestingly, the green tax policy, acting as a proxy for green fiscal policy, negatively influences the sustainable development index. Additionally, the poverty rate emerges as a concerning factor hindering sustainable development in China. The policy implications include advocating for the digitalization of green finance, expanding poverty alleviation efforts, reforming the green taxation system, and implementing corporate sustainable management education programs.