The Relationship Between Government Sustainable Investment and Corporate Finance: Findings from Three Industries in China
DOI:
https://doi.org/10.61173/n3fejr16Keywords:
Government Sustainable Investment, Corporate Finance, Industry Heterogeneity, ROA, Asset Allocation, R&D Lags, Automotive Manufacturing, Financial SectorAbstract
This study examines the impact of Government Sustainable Investment (GSI) on corporate financial performance. Using the Environmental Ratio (ER) as a proxy to measure the intensity of regional policies, we perform linear regression analysis on financial data of 15 firms spanning three sectors: technology, finance, and automotive. Key findings reveal: the finance sector demonstrates a positive effect on efficiency first, though revenue and profit trends remain unstable; the technology sector exhibits overall neutrality in the short term, largely influenced by its globalized revenue structure and the time lag between R&D and commercialization; Automotive manufacturing, which is undergoing compliance-related investments and production line transformation, shows no significant improvement. Overall, GSI influences finance through structural channels such as governance, asset allocation, and operational efficiency, exhibiting distinct time lags and industry-specific heterogeneity. We recommend shifting evaluation metrics from short-window profits to efficiency and risk exposure indicators, while extending observation periods. Limitations include sample size, proxy variables, and window length; future research should expand multinational samples and incorporate sustainability performance metrics such as carbon efficiency indices.
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