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How do carbon emissions trading impact the financialization of non-financial companies? Evidence from a quasi-natural experiment in China

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  • Wenhao Ma
  • Xuwen Yan

Abstract

This study examines whether and how carbon trading policy impacts the financialization of non-financial firms, using China emission trading scheme as a quasi-natural experiment. We find that the carbon trading policy exerts a substantial and enduring inhibitory effect on corporate financialization. Our findings are robust to possible result bias and more precise control group. Additionally, we explore potential channels through which carbon trading policy can affect financialization, and find that it curbs financialization by reducing financing constraints. Finally, we demonstrate that the relationship between carbon trading policy and financialization of non-financial companies is moderated by company’s ownership, region, and industry competition.

Suggested Citation

  • Wenhao Ma & Xuwen Yan, 2023. "How do carbon emissions trading impact the financialization of non-financial companies? Evidence from a quasi-natural experiment in China," PLOS ONE, Public Library of Science, vol. 18(12), pages 1-21, December.
    • Handle: RePEc:plo:pone00:0296277
    DOI: 10.1371/journal.pone.0296277
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    1. Tang, Ye, 2025. "Private economy development, enterprises financialization, and total factor productivity of enterprises," International Review of Economics & Finance, Elsevier, vol. 97(C).

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