Does short selling affect corporate green transformation? —Evidence from China

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-02-14 DOI:10.1016/j.ribaf.2025.102801

Deshuai Hou , Qi Wang , Qiong Sun , Ying Chen

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引用次数: 0

Abstract

This study examines the impact of short selling on corporate green transformation. The findings suggest that short selling significantly hinders this transformation. The mechanism analysis demonstrates that short selling mainly hinders corporate green transformation by aggravating managerial short-sightedness, lowering corporate green innovation quality, misallocating green resources, and reducing the investment of green investors. Further analysis reveals that the negative impact of short selling is more pronounced in firms with higher internal and external pressures, and poorer information quality. Extended research identifies firm-specific limitations emerge as key factors constraining the role of short selling. In addition, CEOs with environmental experience and increased management shareholding can effectively mitigate the negative impact of short selling on corporate green transformation. This study enriches the literature on short-selling and low-carbon transformation of market micro-entities. It also provides empirical evidence that addresses the bottlenecks in corporate green transformation and policy formulation in the context of ecological civilization construction.

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance