Green finance and the relationship with goodwill: A study based on the perspectives of accounting information quality and financing constraints

Abstract

This paper uses data from Chinese listed companies between 2007 and 2020, obtaining a sample of 28,513 valid A-share listed companies. Various regression tests are employed to verify the relationship between green finance and corporate goodwill. Additionally, robustness tests, including the substitution of key variables, narrowing the time window, and introducing a one-period lag for the independent variable, consistently show a positive relationship. Based on these findings, the paper concludes that the development of green finance enhances the goodwill value of enterprises. Furthermore, the study reveals that the development of green finance improves the accounting information quality of enterprises, reduces financing constraints, and subsequently enhances the goodwill value of companies. Presently, there is a scarcity of research examining the correlation between green finance and corporate goodwill value. This study provides a valuable supplement to understanding the impact of green finance development on corporate behavior and holds significance in research.