LAUSR

As global climate change issues have become increasingly severe, green finance has gained widespread attention from governments and financial institutions as a crucial tool for promoting sustainable development. This paper explores the impact of green finance reform pilot zones on corporate debt default risks based on a difference-in-differences model. We found that green finance policies significantly increase corporate debt default risks by exacerbating financing constraints and reducing stock liquidity. A heterogeneity analysis revealed that polluting enterprises, non-state-owned enterprises, and companies in the Eastern region are more susceptible to the impacts of this policy. This paper suggests that the government should formulate differentiated green finance policies tailored to different types of enterprises and regional characteristics.