Abstract
This study investigates the impact of green financial policy on corporate risk-taking, based on data from China's A-share listed companies during 2012–2020. Exploiting a quasi-natural experiment in China, the Green Financial Reform and Innovation Pilot Zones (GFRIPZ), we find that green financial policy has a positive effect on corporate risk-taking. Our analysis shows that the primary effect operates through two channels: reducing agency costs and alleviating financial constraints. The increase in risk-taking is particularly pronounced among companies with low R&D investment and poor ESG performance. This research provides insights for designing more effective environmental programs in emerging economies.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
