Cargando…
Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China
The negative impact of the financialization of non-financial firms cannot be ignored in China. However, existing studies neglect that the government environmental governance is an important influential factor in corporate investment decisions. Using a sample of China’s non-financial listed firms fro...
Autores principales: | , , |
---|---|
Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2023
|
Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10198514/ https://www.ncbi.nlm.nih.gov/pubmed/37205686 http://dx.doi.org/10.1371/journal.pone.0285342 |
_version_ | 1785044753179475968 |
---|---|
author | Hu, Gongjin Yu, Ying Wang, Qinwen |
author_facet | Hu, Gongjin Yu, Ying Wang, Qinwen |
author_sort | Hu, Gongjin |
collection | PubMed |
description | The negative impact of the financialization of non-financial firms cannot be ignored in China. However, existing studies neglect that the government environmental governance is an important influential factor in corporate investment decisions. Using a sample of China’s non-financial listed firms from 2007 to 2020, we examine the impact of local governments’ energy-saving target constraints on the financialization of local firms in terms of whether local governments set numerically specific energy-saving targets in the Government Work Reports. The main findings of this paper are as follows. First, local governments setting clear energy-saving targets inhibit local firms’ financialization and the result holds even after a series of robustness tests. Second, the negative association between local governments’ energy-saving target constraints and firm financialization is more pronounced among firms in eastern regions and green provinces. Third, the quality of firm information disclosure and local environmental public supervision enhance the inhibiting effect of local governments’ energy-saving target constraints on firm financialization. Fourth, local governments’ energy-saving target constraints restrain firm financialization by attracting more external analyst coverage and encouraging internal technological innovation. Moreover, this inhibiting effect can help reduce overinvestment and improve the total factor productivity of firms. Our study provides evidence supporting firm financialization studies from the novel perspective of government environmental governance. |
format | Online Article Text |
id | pubmed-10198514 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-101985142023-05-20 Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China Hu, Gongjin Yu, Ying Wang, Qinwen PLoS One Research Article The negative impact of the financialization of non-financial firms cannot be ignored in China. However, existing studies neglect that the government environmental governance is an important influential factor in corporate investment decisions. Using a sample of China’s non-financial listed firms from 2007 to 2020, we examine the impact of local governments’ energy-saving target constraints on the financialization of local firms in terms of whether local governments set numerically specific energy-saving targets in the Government Work Reports. The main findings of this paper are as follows. First, local governments setting clear energy-saving targets inhibit local firms’ financialization and the result holds even after a series of robustness tests. Second, the negative association between local governments’ energy-saving target constraints and firm financialization is more pronounced among firms in eastern regions and green provinces. Third, the quality of firm information disclosure and local environmental public supervision enhance the inhibiting effect of local governments’ energy-saving target constraints on firm financialization. Fourth, local governments’ energy-saving target constraints restrain firm financialization by attracting more external analyst coverage and encouraging internal technological innovation. Moreover, this inhibiting effect can help reduce overinvestment and improve the total factor productivity of firms. Our study provides evidence supporting firm financialization studies from the novel perspective of government environmental governance. Public Library of Science 2023-05-19 /pmc/articles/PMC10198514/ /pubmed/37205686 http://dx.doi.org/10.1371/journal.pone.0285342 Text en © 2023 Hu et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Hu, Gongjin Yu, Ying Wang, Qinwen Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China |
title | Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China |
title_full | Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China |
title_fullStr | Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China |
title_full_unstemmed | Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China |
title_short | Do local governments’ energy-saving target constraints inhibit financialization? Evidence from nonfinancial listed firms in China |
title_sort | do local governments’ energy-saving target constraints inhibit financialization? evidence from nonfinancial listed firms in china |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10198514/ https://www.ncbi.nlm.nih.gov/pubmed/37205686 http://dx.doi.org/10.1371/journal.pone.0285342 |
work_keys_str_mv | AT hugongjin dolocalgovernmentsenergysavingtargetconstraintsinhibitfinancializationevidencefromnonfinanciallistedfirmsinchina AT yuying dolocalgovernmentsenergysavingtargetconstraintsinhibitfinancializationevidencefromnonfinanciallistedfirmsinchina AT wangqinwen dolocalgovernmentsenergysavingtargetconstraintsinhibitfinancializationevidencefromnonfinanciallistedfirmsinchina |