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      Can green funds improve corporate environmental, social, and governance performance? Evidence from Chinese-listed companies

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      PLOS ONE
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          Abstract

          Green funds play pivotal roles in driving corporate sustainable development. Utilizing data from Chinese publicly listed companies from 2010 to 2021, we examine the impact of green funds on corporate environmental, social, and governance (ESG) performance and the underlying mechanisms. The research findings claim that green funds positively affect corporate ESG performance. Mechanism analysis systematically demonstrates that green funds contribute to elevated corporate ESG performance by alleviating financial constraints, enhancing managerial efficiency, and fostering green innovation. Heterogeneity analysis further underscores that the effect of green funds is particularly potent in companies with high external attention. Furthermore, green funds also play significant roles in production capabilities and economic value. This research enriches the micro-level evidence on the development of green funds and furnishes substantial implications for sustainable development.

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          Most cited references85

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          Theory of the firm: Managerial behavior, agency costs and ownership structure

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              Corporate social responsibility and access to finance

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                Author and article information

                Contributors
                Role: ConceptualizationRole: Data curationRole: Formal analysisRole: InvestigationRole: MethodologyRole: Project administrationRole: Writing – original draft
                Role: Formal analysisRole: MethodologyRole: SupervisionRole: ValidationRole: VisualizationRole: Writing – review & editing
                Role: ConceptualizationRole: InvestigationRole: Project administrationRole: SupervisionRole: ValidationRole: Writing – review & editing
                Role: Editor
                Journal
                PLoS One
                PLoS One
                plos
                PLOS ONE
                Public Library of Science (San Francisco, CA USA )
                1932-6203
                28 March 2024
                2024
                : 19
                : 3
                : e0301395
                Affiliations
                [1 ] School of Business, Ningbo University, Ningbo, China
                [2 ] School of Business, East China University of Science and Technology, Shanghai, China
                Lincoln University, NEW ZEALAND
                Author notes

                Competing Interests: The authors have declared that no competing interests exist.

                Author information
                https://orcid.org/0000-0002-7833-7231
                Article
                PONE-D-23-38405
                10.1371/journal.pone.0301395
                10977774
                38547225
                febe14d3-67e3-4257-8f9c-dad2119b6608
                © 2024 Wang et al

                This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

                History
                : 21 November 2023
                : 11 March 2024
                Page count
                Figures: 3, Tables: 20, Pages: 32
                Funding
                Funded by: funder-id http://dx.doi.org/10.13039/501100012456, National Social Science Fund of China;
                Award ID: 20AZD033
                Award Recipient :
                Funded by: funder-id http://dx.doi.org/10.13039/501100001809, National Natural Science Foundation of China;
                Award ID: 72373078
                Award Recipient :
                Funded by: funder-id http://dx.doi.org/10.13039/501100012456, National Social Science Fund of China;
                Award ID: 21BJY002
                Award Recipient :
                Funded by: funder-id http://dx.doi.org/10.13039/501100014991, Shanghai Office of Philosophy and Social Science;
                Award ID: 2023EJB005
                Award Recipient :
                Funded by: Shanghai Post-doctoral Excellence Program
                Award ID: 2023237
                Award Recipient :
                This work was supported by the National Social Science Fund of China [21BJY002], National Natural Science Foundation of China [72373078], the National Social Science Fund of China [20AZD033], Shanghai Planning Office of Philosophy and Social Science [2023EJB005], Shanghai Post-doctoral Excellence Program [2023237]. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.
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