Work

How does a government-certificated green identity improve enterprises' market value?

Year: 2025

Type: article

Abstract: This study analyzes the correlation between the government-certificated green identity and enterprises` market value from 2016 to 2023. The results indicate that the government-certificated green identity significantly promotes enterprises` market value improvement, mainly through reinforcing stakeholder trust and optimizing capital allocation efficiency. The analysis reveals heterogeneous effects influenced by organizational characteristics—non-state-owned, small-size firms and firms in heavily polluted industries benefit more from acquiring green identity. The results indicate that market incentives for decarbonization pledges depend on an organization's capacity to transform sustainability signals into operational solutions. The evidence establishes ecological authentication as a matter of regulatory compliance and a competitive differentiator in capital markets, especially for enterprises facing resource limitations while aligning environmental governance with investor expectations.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104147

Authors: Xiaodan Zhang, Juanjuan Qin

Institution: Tianjin University of Finance and Economics

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Climate action

Open Access status: gold

Estimated APC paid: $1,930