Carbon abatement pressure and corporate cash holdings: Evidence from China

Guoquan Xu; Lan Mi; Xin Li; Yan Tong

doi:10.1016/j.bir.2023.11.001

Carbon abatement pressure and corporate cash holdings: Evidence from China

Guoquan Xu, Lan Mi, Xin Li, Yan Tong^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

This study investigates whether and how the perception of carbon abatement pressure affects corporate financing behavior. The results show that carbon abatement pressure increases corporate cash holdings via the channel of financing constraints, and this positive relationship still holds after a series of robustness tests. This positive relationship is pronounced for private firms, those with higher operational risks, and firms in regions with lower levels of marketization.

Original language	English
Pages (from-to)	84-94
Number of pages	11
Journal	Borsa Istanbul Review
Volume	24
Issue number	1
DOIs	https://doi.org/10.1016/j.bir.2023.11.001
Publication status	Published - Jan 2024

Keywords

Carbon abatement pressure
Cash holdings
Institutional pressure

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10.1016/j.bir.2023.11.001

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title = "Carbon abatement pressure and corporate cash holdings: Evidence from China",

abstract = "This study investigates whether and how the perception of carbon abatement pressure affects corporate financing behavior. The results show that carbon abatement pressure increases corporate cash holdings via the channel of financing constraints, and this positive relationship still holds after a series of robustness tests. This positive relationship is pronounced for private firms, those with higher operational risks, and firms in regions with lower levels of marketization.",

keywords = "Carbon abatement pressure, Cash holdings, Institutional pressure",

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AB - This study investigates whether and how the perception of carbon abatement pressure affects corporate financing behavior. The results show that carbon abatement pressure increases corporate cash holdings via the channel of financing constraints, and this positive relationship still holds after a series of robustness tests. This positive relationship is pronounced for private firms, those with higher operational risks, and firms in regions with lower levels of marketization.

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Carbon abatement pressure and corporate cash holdings: Evidence from China

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Keywords

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