OpenLB
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Environmental science and pollution research international
Aug, 2023;30 (37): 87199-87214.

The impact of green financial development on stock price crash risk from the perspective of information asymmetry in Chinese listed companies.

Zhibin Zhang, Youqiang Ding
Author Information
  1. Zhibin Zhang: Economic School Shandong Technology and Business University, 191 Binhai Middle Road, Yantai, 264005, Shandong, China.
  2. Youqiang Ding: School of Finance Tongling University, 1335 Cuihu 4th Road, Tongling, 244061, Anhui, China. dingyouqiang@163.com. ORCID
PMID: 37418190 DOI: 10.1007/s11356-023-27771-y

Abstract

Solving the crash risk problem of corporate stock price caused by information asymmetry can mitigate the negative externality of its carbon emission to become green, low-carbon, and high-quality development. Green finance generally profoundly impacts micro-corporate economics and macro-financial systems but remains a giant puzzle of whether they can effectively resolve the crash risk. This paper examined the impact of green financial development on the stock price crash risk using the sample data of non-financial listed companies in Shanghai and Shenzhen A stock market in China from 2009 to 2020. We found that green financial development significantly inhibits the stock price crash risk; this is more obvious in listed companies with a high level of asymmetric information. And companies in high-level regions of green financial development attracted more attention from institutional investors and analysts. As a result, they disclosed more information about their operational status, thus reducing the crash risk of corporate stock price from the torrential public pressure of lousy environmental details. Therefore, this study will help continuously discuss the costs, benefits, and value promotion of green finance for synergy between corporate performance and environmental performance to improve ESG capabilities.

Keywords

Green finance Information asymmetry Stock risk Sustainable development

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Grants

  1. SK2021ZD0084/Major Project of Higher Educational Humanity and Social Sciences Foundation of Anhui Province
  2. 2021tlxyrc06/Scientific Research Foundation for Talent Introduction of Tongling University

MeSH Term

Carbon
China
Sustainable Development
Economic Development
Investments
Commerce
Information Dissemination

Chemicals

Carbon
Journal Article

Word Cloud

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