The impact of green finance on enterprise investment and financing

Abstract

Green finance can provide impetus to fight the battle against pollution and realize the green transformation of the economy, and promote the implementation of the carbon peaking and carbon neutrality goals. To further explore the impact of green finance on enterprise investment and financing, this article focuses on the demand side of green finance, selecting non-financial A-share listed companies in China from 2010 to 2020 as the research objects and employing a fixed-effects model for analysis. The study indicates that the development of green finance helps expand the scale of enterprise investment and financing. To investigate whether this impact varies among different entities, we conduct a heterogeneity analysis. And reveals that the development of green finance significantly enlarges the investment scale of non-state-owned enterprises, and the financing scale of state-owned enterprises in terms of ownership heterogeneity. Regional heterogeneity analysis finds the development of green finance contributes to the expansion of investment scale for enterprises in the western region, and the financing scale in the eastern region.