Abstract
Under the severe situation of global warming, low-carbon development is gaining more and more attention. Due to the different research methods, research samples, and the selection of performance indicators, there is greater disagreement on the relationship between carbon performance and financial performance. The study covers the dataset starting from 2013 to 2020 regarding 352 Chinese-listed companies with high energy consumption industries. The study uses the System GMM to explore the association between carbon performance and financial performance. The results we provided show that (1) carbon performance can significantly improve financial performance, but this effect is intertemporal. (2) Financial performance enhances carbon performance, and this effect is not lagged. (3) In terms of ownership structure heterogeneity, non-state-owned firms have a more significant effect of carbon performance on their financial performance, while the positive impact of financial performance on carbon performance is more pronounced in state-owned firms. The above findings provide a theoretical basis to motivate enterprises to improve their carbon performance and help China achieve the carbon neutrality goal as soon as possible.
Published Version
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