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Green finance, green governance performance, and the ESG performance: Evidence from a quasi-natural experiment

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  • Liu, Jiexian
  • Liang, Gaoyang

Abstract

This research delves into the interconnections among green financial reform and innovation, green governance performance, and the ESG performance of listed companies in China spanning from 2007 to 2023. The results show that there exists a notably positive correlation between green financial reform and innovation and ESG performance. The impact of green financial reform varies among companies with different pollution levels. Additionally, green governance performance mediates the relationship between green financial reform and ESG performance, with this mediating effect showing heterogeneity based on whether the companies are audited by one of the Big Four accounting firms.

Suggested Citation

  • Liu, Jiexian & Liang, Gaoyang, 2025. "Green finance, green governance performance, and the ESG performance: Evidence from a quasi-natural experiment," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010438
    DOI: 10.1016/j.frl.2025.107785
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    References listed on IDEAS

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