IDEAS home Printed from https://ideas.repec.org/a/taf/jsustf/v16y2026i1p22-54.html

Does green transformation improve firm performance? Evidence of China

Author

Listed:
  • Asif Ali
  • Zunhuan Shen
  • Ding Haotian
  • Farman Ali

Abstract

This article explores the relationship between green transformation and the firm performance of Chinese enterprises listed on the Shanghai and Shenzhen stock markets over the period of 2006–2022. Our study findings indicate that green transformation positively and significantly influences the firms’ financial performance. These outcomes suggest that investment in green transformation or adoption and implementation of green practices assists firms in establishing a green image, which in turn attracts the attention of different stakeholders, including green investors and green consumers, ultimately enhancing the firm's performance. Our baseline outcomes remain unchanged after accounting for a series of robustness checks, including alternative indicators of green transformation, endogeneity tests, sample change checks, and heterogeneity analysis. In a nutshell, our outcomes suggest that, along with the implementation of environmental protection law, the government should provide subsidies to the firms in order to promote green transformation.

Suggested Citation

  • Asif Ali & Zunhuan Shen & Ding Haotian & Farman Ali, 2026. "Does green transformation improve firm performance? Evidence of China," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 16(1), pages 22-54, January.
    • Handle: RePEc:taf:jsustf:v:16:y:2026:i:1:p:22-54
    DOI: 10.1080/20430795.2026.2620380
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/20430795.2026.2620380
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/20430795.2026.2620380?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jsustf:v:16:y:2026:i:1:p:22-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TSFI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.