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Macro-environmental Regulation and Corporate Financial Constraints - A Quasi-Natural Experiment of China’s Low-Carbon City Pilot

Author

Listed:
  • Qi Liu
  • Yongyu Gui
  • Wei Wang
  • Hua Wang

    (Network Information Center, Guangxi Normal University, China)

Abstract

This paper examines the impact of macro-environmental regulations on corporate financial constraints, using the shocks of China’s low-carbon city pilots and panel data on Chinese A-share listed companies from 2009 to 2018. We find that low-carbon city pilot regulation lessens the intensity of corporate financial constraints. We further find that this negative relation is more significant for state-owned enterprises and manufacturing enterprises.

Suggested Citation

  • Qi Liu & Yongyu Gui & Wei Wang & Hua Wang, 2023. "Macro-environmental Regulation and Corporate Financial Constraints - A Quasi-Natural Experiment of China’s Low-Carbon City Pilot," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 3(4), pages 1-7.
    • Handle: RePEc:ayb:jrnerl:65
    DOI: 2023/01/14
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    References listed on IDEAS

    as
    1. Qi Chen & Xiao Chen & Katherine Schipper & Yongxin Xu & Jian Xue, 2012. "The Sensitivity of Corporate Cash Holdings to Corporate Governance," Review of Financial Studies, Society for Financial Studies, vol. 25(12), pages 3610-3644.
    2. Jonathan Eaton & Gene M. Grossman, 1986. "Optimal Trade and Industrial Policy Under Oligopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 383-406.
    3. Charles J. Hadlock & Joshua R. Pierce, 2010. "New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index," Review of Financial Studies, Society for Financial Studies, vol. 23(5), pages 1909-1940.
    4. Jingbo Cui & Junjie Zhang & Yang Zheng, 2018. "Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 453-457, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    low-carbon city; Corporate financial constraints; Macro-environmental regulation;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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