Abstract
ABSTRACT How does the Green Finance Pilot Policy (GFPP) in China impact the investment efficiency (IE) of industrial enterprises? Utilizing the establishment of green finance reform and innovation pilot zones in eight regions across five provinces in 2017 as a quasi-natural experiment, this paper applies the difference-in-differences method to assess the impact of the GFPP on the IE in the industrial sector. Our findings reveal that the GFPP significantly boosts IE by addressing issues of overinvestment. Furthermore, the GFPP enhances IE by reducing debt financing and improving information transparency. We recommend that policymakers further promote the GFPP and strengthen information disclosure regulations to guide rational investment in industrial enterprises.
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 callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
