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The Green Finance Reform Pilot Zone Policy and Corporate Sustainable Development Performance: A Quasi-Natural Experiment from China

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  • Shunping Teng

    (School of Management, Universiti Sains Malaysia, Minden Penang 11800, Malaysia
    Business School, Hunan Institute of Technology, Hengyang 421002, China)

  • Haslindar Ibrahim

    (School of Management, Universiti Sains Malaysia, Minden Penang 11800, Malaysia)

Abstract

This study investigates the effect of the Green Finance Reform Pilot Zone Policy (GFRPZP) on corporate sustainable development performance (SDP) using a multi-period difference-in-differences (DIDs) regression model. This model incorporates control variables, reflecting firm-level characteristics and regional economic conditions. The results show that GFRPZP significantly enhances corporate SDP, with stronger effects observed among non-state-owned enterprises (Non-SOEs), companies situated in eastern regions, those in non-heavily polluting industries, and high-tech companies. Mediation analysis indicates that the policy enhances sustainable development through four main channels: improving the quality and quantity of green innovation, easing financing constraints, and increasing analyst attention. Moderation analysis further demonstrates that digital transformation and internal control strengthen the policy’s effect.

Suggested Citation

  • Shunping Teng & Haslindar Ibrahim, 2025. "The Green Finance Reform Pilot Zone Policy and Corporate Sustainable Development Performance: A Quasi-Natural Experiment from China," Sustainability, MDPI, vol. 17(15), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:6674-:d:1707042
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    References listed on IDEAS

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