Corporate carbon emission effectiveness and corporate green transformation: Based on a quasi-natural experiment from China

Green finance policies serve as a critical driver for the green transformation of enterprises, significantly influencing the environmental decision-making of corporate leaders. Publicly listed companies disclose carbon reduction data through various channels, including corporate social responsibility reports, sustainability reports, and corporate bylaws. This aggregation of information enhances market transparency and strengthens the interconnectedness between listed companies and the market, thereby enriching the external information environment for these firms. Such data dissemination facilitates the implementation of incentive-compatible market governance mechanisms within companies, thereby promoting their green transformation efforts. This study employs the Carbon Emission Disclosure (Cid) and a Difference-in-Differences (DID) model to examine the impact of carbon reduction measures on the green transformation of listed companies before and after the establishment of green finance pilot zones, utilizing data from 2008 to 2021. We analyze how these enhance corporate governance, increase media attention, stimulate government research and development investments, and ultimately influence the green innovation and overall productivity of these enterprises. Our findings indicate that the effects of these processes depend on factors such as the degree of marketization within the industry, company size, and geographic location. Empirical results provide robust support for the implementation of green finance pilot zone policies in China and offer policy recommendations for publicly listed companies to enhance energy conservation, emission reduction, and green development.