Version 1
: Received: 10 May 2023 / Approved: 10 May 2023 / Online: 10 May 2023 (09:59:35 CEST)
How to cite:
Ma, W.; Yan, X. How do Carbon Emissions Trading Impact the Financialization of Non-Financial Companies? Evidence from a Natural Experiment in China. Preprints2023, 2023050727. https://doi.org/10.20944/preprints202305.0727.v1
Ma, W.; Yan, X. How do Carbon Emissions Trading Impact the Financialization of Non-Financial Companies? Evidence from a Natural Experiment in China. Preprints 2023, 2023050727. https://doi.org/10.20944/preprints202305.0727.v1
Ma, W.; Yan, X. How do Carbon Emissions Trading Impact the Financialization of Non-Financial Companies? Evidence from a Natural Experiment in China. Preprints2023, 2023050727. https://doi.org/10.20944/preprints202305.0727.v1
APA Style
Ma, W., & Yan, X. (2023). How do Carbon Emissions Trading Impact the Financialization of Non-Financial Companies? Evidence from a Natural Experiment in China. Preprints. https://doi.org/10.20944/preprints202305.0727.v1
Chicago/Turabian Style
Ma, W. and Xuwen Yan. 2023 "How do Carbon Emissions Trading Impact the Financialization of Non-Financial Companies? Evidence from a Natural Experiment in China" Preprints. https://doi.org/10.20944/preprints202305.0727.v1
Abstract
This study examines whether and how carbon trading policy impacts the financialization of non-financial firms, using China emission trading scheme as a natural experiment. We show that the carbon trading policy has effectively long-term inhibitory effect on corporate financialization. Our findings are robust to possible result bias and more precise control group. In addition, we explore potential channels through which carbon trading policy can affect financialization, and find that it contributes to curb financialization by reducing financing constraints. Finally, we show that the relationship between carbon trading policy and financialization of non-financial companies is moderated by company’s ownership, region and industry competition.
Keywords
carbon emissions trading; corporate financialization; financing constraints; difference-in-differences model
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
