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Can the intensity of environmental regulation enhance corporate risk-taking?

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  • Li, Xinying
  • Chen, Huiyu
  • Tu, Yongqian

Abstract

This paper selects Chinese listed companies from 2010 to 2023 as the research subject and systematically analyzes the impact of environmental regulation intensity on corporate risk-taking levels, further examining the mediating effect of access to financial resources. The results show: First, there is a significant negative correlation between environmental regulation intensity and corporate risk-taking levels. Second, the restraining effect of environmental regulation intensity on corporate risk-taking is more pronounced in industries with low competition as well as in companies with high ownership concentration. Third, access to financial resources plays a partial mediating role in the process by which environmental regulation affects corporate risk-taking, revealing the internal mechanism by which environmental policy influences corporate risk decisions through improving financial resource allocation.

Suggested Citation

  • Li, Xinying & Chen, Huiyu & Tu, Yongqian, 2026. "Can the intensity of environmental regulation enhance corporate risk-taking?," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s154461232502505x
    DOI: 10.1016/j.frl.2025.109256
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    References listed on IDEAS

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