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How green factory certification drives corporate environmental performance

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  • Xu, Lingli
  • Guo, Jianmei

Abstract

Against the backdrop of the global push for green manufacturing, China's green factory certification serves as a potent policy instrument, yet its impact on corporate environmental performance remains underexplored. This study investigates the impact of China's green factory certification policy on corporate environmental performance by employing a multi-period propensity score matching and difference-in-differences (PSM-DID) approach on a sample of A-share listed manufacturing firms from 2009 to 2024. To ensure the credibility of our findings, we conduct a series of robustness checks, including multiple placebo tests, the CSDID estimator, Double Machine Learning (DML), and an instrumental variable analysis. The results consistently show that green factory certification exerts a significant positive effect on corporate environmental performance. Further mechanism analysis identifies green innovation and environmental information disclosure as two critical mediating channels. Heterogeneity analysis also reveals that the certification effect is stronger among heavily polluting firms, non-high-tech industries, and enterprises with lower analyst coverage.These results offer micro-level evidence supporting the environmental benefits of green manufacturing policies and provide insights for promoting corporate green transformation and sustainable development.

Suggested Citation

  • Xu, Lingli & Guo, Jianmei, 2026. "How green factory certification drives corporate environmental performance," Finance Research Letters, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:finlet:v:102:y:2026:i:c:s1544612326006161
    DOI: 10.1016/j.frl.2026.110087
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