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Green supply chain management project and firms’ cost of equity capital: Evidence from China

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  • Yin, Zhujia
  • Wang, Xingting
  • Xia, Jiejin
  • Chang, Chun-Ping

Abstract

Based on a quasi-natural experiment of establishing the green supply chain management project in China, we find that the green supply chain management project robustly lowers companies’ cost of equity capital. This impact is achieved through increased environmental information disclosure and investor attention. Heterogeneity analysis indicates that the impact is stronger in companies with higher government environmental concerns, better supply chain efficiency, or cleaner industries. Additional examination indicates that the green supply chain management project raises the cost of equity capital for upstream companies, while simultaneously lowers it for downstream companies two years afterward. Overall, our findings highlight the significance of green supply chain management in influencing financial outcomes and investor choices.

Suggested Citation

  • Yin, Zhujia & Wang, Xingting & Xia, Jiejin & Chang, Chun-Ping, 2026. "Green supply chain management project and firms’ cost of equity capital: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 1133-1148.
  • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:1133-1148
    DOI: 10.1016/j.eap.2025.08.048
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